Tether Bans Stablecoin Yields Distances from Coinbase

Tether Supports Stablecoin Yield Ban, Creating Rift with Coinbase

• Tether backs a provision in draft US legislation banning yield on stablecoins, despite criticism from the crypto community.
• Coinbase CEO Brian Armstrong withdrew support for the bill, citing key dealbreakers like the interest restriction on stablecoins.
• Armstrong accused the banking lobby of trying to eliminate competition for deposits.
• Tether met with Senate members and disagreed with Armstrong’s public critique of the bill.
• Coinbase pays some users 3.5% interest on Circle’s USDC and advocates for stablecoin yield.
• The debate follows Tether’s launch of its USAT stablecoin, aimed at fitting within a federal framework.

Tether supports a legislative provision banning stablecoin yield, diverging from Coinbase’s stance. This disagreement arises amid Tether’s launch of its USAT stablecoin, designed to align with federal regulations.