Coinbase CEO: Banks Are Using False Threats to Fight Stablecoin Incentives

According to Mars Finance, Coinbase CEO Brian Armstrong recently told Congress that the banking industry's opposition to cryptocurrency exchanges offering stablecoin rewards, citing systemic risk, is creating a "false threat." Coinbase currently offers a 4.1% reward to USDC holders, and the banking industry is concerned this could lead to a massive outflow of deposits into stablecoins. The U.S. Treasury's Borrowing Advisory Committee estimates that up to $6.6 trillion in deposits could shift to stablecoins. Armstrong believes the banking industry's true intention is to protect its $180 billion in payments revenue. In response, Wyoming Republican Senator Cynthia Lummis stated that the issue has been addressed in the GENIUS Act and should not be reopened.