Coinbase CEO Brian Armstrong recently took to the X social media network to slam "big banks" for trying to reverse the ability of cryptocurrency trading platforms to offer rewards in Circle's USDC stablecoin.
Armstrong argues that banks are attempting to preserve their monopoly over deposits.
"They want to undo your right under the GENIUS Act law to earn USDC rewards. Don't let them," Armstrong said.
The Coinbase executive has stressed that bailing out big banks, which are enjoying record-breaking profit margins, "is not gonna fly." "That would be a foolish thing to do politically because there's 50 million Americans like you who have now used crypto," he stressed.
Clamping down on stablecoin yield
Coinbase and other cryptocurrency firms, including Kraken, Gemini, and BitGo, are currently leading an intense lobbying push that is meant to prevent banks from banning crypto rewards.
The Bank Policy Institute wants to bar exchanges from being able to offer stablecoin yields, which is part of an aggressive behind-the-scenes campaign.
The banking industry claims that stablecoins pose a threat to deposits and credit markets.
Earlier today, the Blockchain Association launched a campaign to protect the landmark GENIUS Act from banks.
The pro-crypto lobbying and advocacy group claims that stablecoins actually strengthen the market by enabling instant settlement and making transactions substantially cheaper.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team