Coinbase CEO Brian Armstrong posted on X that banks are lobbying the U.S. Congress to amend the GENIUS Act, and Coinbase will not allow anyone to modify this act, which is a red line for Coinbase, and will continue to uphold the interests of customers and the cryptocurrency industry. Brian Armstrong added that he personally predicts that in a few years, once banks realize the huge business opportunities brought by stablecoins, they will change their stance and lobby Congress to allow stablecoin interest and yield payments, so what they are doing now is completely futile (and also unethical), and the innovator’s dilemma always exists.
It is reported that the current GENIUS Act requires stablecoin issuers not to provide stablecoin rewards, but trading intermediary platforms like Gemini, Coinbase, and Kraken can, and this has already been included in the current legislation. If traditional bankers amend the act to prohibit such actions, it will hinder stablecoin innovation.
The current GENIUS Act reportedly forbids stablecoin issuers from offering rewards, while trading platforms such as Gemini, Coinbase, and Kraken can, and this nuance is already included in the legislation. Armstrong warned that if traditional bankers succeed in prohibiting such actions, it could stifle stablecoin innovation and hinder market development. This dynamic underscores the ongoing tension between regulatory policy and crypto innovation, with policymakers and industry participants watching how yield-bearing stablecoins might be treated under future amendments. The discussion highlights how evolving regulation could shape the trajectory of stablecoins and related cryptocurrency services.
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