Coinbase CEO "U.S. ban on stablecoin interest payments would undermine global competitiveness"

It was pointed out that if the United States bans or restricts interest payments on stablecoins, it could have a serious adverse effect on the global competitiveness of stablecoins.

Coinbase chief executive officer (CEO) Brian Armstrong expressed concern about the United States' stablecoin policy direction on the 7th (local time) on his X (formerly Twitter). He said, "If the United States bans or restricts interest payments on stablecoins, it will greatly weaken the competitiveness of U.S. stablecoins."

Armstrong cited China's policy as a comparative example. He explained, "The People's Bank of China announced guidelines allowing interest payments on central bank digital currency (CBDC) wallets," adding, "that is likely because they judged it could provide tangible benefits to ordinary citizens and act as a competitive advantage."

He went on to point out, "If the United States maintains its current policy stance, it is likely to be at a disadvantage in the global stablecoin competition." He added that regulations that constrain innovation in the stablecoin market could have a negative impact on the long-term growth of the U.S. fintech industry.

Armstrong also took a critical stance on excessive intervention by policymakers. He said, "It is desirable to let market mechanisms operate on their own," emphasizing that development through competition and choice is needed rather than regulation.

Recently, in the United States, discussions have continued over whether to allow interest payments in connection with stablecoin regulation. The industry views the policy as directly tied to the international standing of dollar-backed stablecoins, and is on alert for future legislative and regulatory directions.