Armstrong: Let stablecoins work like high-yield accounts, not just protect banks
Coinbase CEO Brian Armstrong is calling on U.S. legislators to allow interest-bearing features for stablecoins, arguing that the government should not favor banks over crypto platforms.
In a March 31 post on X, Armstrong advocated for a free-market approach that allows both banks and crypto firms to share the interest earned from reserve assets with customers. He proposed enabling “onchain interest,” allowing stablecoins like USDC to function more like high-yield checking accounts.
Armstrong argued that stablecoin issuers currently retain all yield from backing assets such as U.S. Treasuries, while consumers miss out on potential returns. He emphasized that crypto companies should be incentivized to compete fairly—rather than be restricted by outdated rules designed to protect traditional financial institutions.
Stablecoin legislation under the spotlight
His remarks come as U.S. lawmakers debate two major stablecoin bills: the House’s STABLE Act and the Senate’s GENIUS Act. Both currently treat stablecoin issuers as financial institutions under the Bank Secrecy Act (BSA), sparking criticism for potentially stifling innovation.
House Majority Whip Tom Emmer has also opposed applying BSA requirements to stablecoins, while Senator Elizabeth Warren has taken aim at President Trump’s DeFi startup, World Liberty Financial, accusing him of using stablecoin legislation for personal gain.
As regulatory debates continue, Armstrong’s comments add pressure for a more balanced framework—one that encourages crypto innovation without skewing the market in favor of incumbent banks.
