Coinbase CEO Armstrong defends USDC rewards, accuses banks of weaponizing regulation
- —Coinbase USDC rewards range from 3.75% to 4.5% and are funded by short-term US Treasury interest
- —The GENIUS Act prohibits stablecoin issuers from offering yield but exempts non-issuers
- —Banking lobbyists warn stablecoin rewards could trigger trillions in deposit flight
- —The CLARITY Act stalled over disputes on stablecoin rewards provisions
Why it matters: The outcome will determine whether exchanges like Coinbase can keep paying stablecoin yield, shaping competition with banks and demand for USDC.
Source: Crypto Briefing