Coinbase CEO: Banks using 'false threats' to fight stablecoin rewards

According to CNBC, Coinbase CEO Brian Armstrong recently dismissed claims by banking groups that stablecoin rewards are causing customers to withdraw funds from community banks as "false threats." Coinbase currently offers 4.1% rewards to USDC holders, while Kraken offers 5.5%, raising concerns among the banking industry that 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 motivation is to protect its $180 billion in payments revenue. Senator Cynthia Lummis believes the issue has been addressed in the GENIUS Act and should not be reopened.