Coinbase CEO Brian Armstrong has urged US lawmakers to ensure stablecoin legislation enables consumers to earn interest, emphasizing that US policy should not favor banks at the cost of innovation or public benefit.
Armstrong advocated for allowing crypto firms to offer “onchain interest” to stablecoin holders, making digital dollars function similarly to interest-bearing checking accounts, as noted in a March 31 post on X.
“The government shouldn’t favor one industry over another,” Armstrong stated. “Both banks and crypto companies should have the ability and incentive to share interest with consumers, aligning with a free market approach.”
Stablecoins like USDC are pegged 1:1 to the US dollar and generally backed by reserve assets such as short-term Treasuries.
