BlockBeats News, January 16th, according to Bloomberg, Coinbase CEO Brian Armstrong met with lawmakers on Capitol Hill to ensure his company can continue paying rewards to users holding stablecoins on the platform. Armstrong stated that banking lobbying groups are attempting to restrict stablecoin rewards through legislation, which would hinder the crypto industry’s ability to compete with banks for funds. He believes that Americans should have the right to earn higher yields through their funds, and banks are concerned about being forced to raise deposit rates for customers as a result.
Previously, Armstrong opposed a draft digital asset market structure bill planned for review by a Senate committee, after which committee chairman Tim Scott announced a delay in action on the bill. The compromise clause in the draft originally prohibited payment of deposit yields but allowed other forms such as trading rewards. However, senators are expected to vote on an amendment that comprehensively bans stablecoin rewards, with the outcome still unclear.
