Debate Over GENIUS Act’s Stablecoin Rewards Intensifies
- Faryar Shirzad from Coinbase highlighted the debate over stablecoin rewards in the GENIUS Act, emphasizing their consumer benefits.
- He argued that US banks earn about $176 billion annually from Federal Reserve deposits and $187 billion from card fees.
- Shirzad warned that banning stablecoin rewards could aid China’s Digital Yuan efforts against the US dollar.
- John E. Deaton criticized the American Bankers Association’s push to close a loophole affecting companies like Coinbase and Kraken.
The ongoing discussions around the GENIUS Act’s stablecoin rewards provisions highlight significant financial stakes for both banks and consumers. The potential impact on US dollar dominance is underscored by China’s strategic moves with its Digital Yuan.
Shirzad and Deaton stress that restricting stablecoin rewards may inadvertently bolster China’s currency position while protecting bank profits at a cost to consumers’ financial benefits. Source
