{"id":19961,"date":"2025-04-01T02:31:33","date_gmt":"2025-04-01T02:31:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19961"},"modified":"2025-04-01T02:31:33","modified_gmt":"2025-04-01T02:31:33","slug":"coinbase-ceo-calls-for-change-in-stablecoin-laws-to-enable-onchain-interest","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19961","title":{"rendered":"Coinbase CEO calls for change in stablecoin laws to enable \u2018onchain interest\u2019"},"content":{"rendered":"
\n

<\/p>\n<\/p>\n

\"Coinbase<\/p>\n

Coinbase CEO Brian Armstrong is calling for legislative changes in the US to allow stablecoin holders to earn \u201conchain interest\u201d on their holdings.<\/p>\n

In a March 31 post<\/a> on X, Armstrong argued that crypto companies should be treated similarly to banks and be \u201callowed to, and incentivized to, share interest with consumers.\u201d He added that allowing onchain interest would be \u201cconsistent with a free market approach.\u201d<\/p>\n

\"Coinbase
\n

Source:<\/em> Brian Armstrong<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

There are currently two competing pieces of federal stablecoin legislation working their way through the legislative process in the US: the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.<\/p>\n

In reference to the stablecoin legislation, Armstrong said the US had an opportunity to \u201clevel the playing field and ensure these laws pave a way for all regulated stablecoins to deliver interest directly to consumers, the same way a savings or checking account can.\u201d\u00a0<\/p>\n

Armstrong: Onchain interest a boon for US economy<\/h2>\n

Armstrong argued that while stablecoins have already found product-market fit by \u201cdigitizing the dollar and other fiat currencies,\u201d the addition of onchain interest would allow \u201cthe average person, and the US economy, to reap the full benefits.\u201d<\/p>\n

He said that if legislative changes allowed stablecoin issuers to pay interest to holders, US consumers could earn a yield of around 4% on their holdings, far outstripping the 2024 average interest yield on a consumer savings account, which Armstrong cited as 0.41%.<\/p>\n

Armstrong also said onchain interest could benefit the broader US economy \u2014 by incentivizing the global use of US dollar stablecoins. This could see their use grow, \u201cpulling dollars back to U.S. treasuries and extending dollar dominance in an increasingly digital global economy,\u201d according to the Coinbase CEO.\u00a0<\/p>\n