Coinbase CEO Calls for Legalization of On-Chain Interest
- Brian Armstrong, CEO of Coinbase, urges U.S. lawmakers to amend stablecoin legislation.
- He proposes legalizing “on-chain interest” to allow issuers to share profits with users.
- Stablecoin issuers hold reserves in low-risk assets like U.S. Treasury bills with a yield of 4.75% in 2024.
- Current legislation potentially prohibits interest distribution, equating stablecoins to securities.
- The STABLE and GENIUS bills contain clauses prohibiting interest payments on stablecoins.
Brian Armstrong advocates for changes in U.S. stablecoin laws, emphasizing the potential benefits of legalizing “on-chain interest,” which current legislation may prohibit due to concerns over classifying stablecoins as securities.
Source (2.6)https://hodl.press/coinbase-ceo-advocates-legalizing-on-chain-yields/?rand=24434
