PiCK
Coinbase CEO: "Banning crypto interest could actually benefit us…still opposed"
Summary
- CEO Armstrong said that if a regulation banning crypto reward payments is implemented, it could help Coinbase’s profitability.
- Despite the potential savings from reducing reward (interest) costs paid to USDC-holding customers, he said he opposes the regulation to preserve the competitiveness of the U.S. crypto industry.
- Armstrong said that a rewards system is essential for the U.S. to maintain the global competitiveness of regulated stablecoins.
Brian Armstrong, chief executive officer (CEO) of Coinbase, offered a paradoxical response to the recently debated regulation that would ban reward payments on virtual assets (cryptocurrencies), saying it "could actually help the company’s profitability." However, he made clear that he opposes the regulation to protect the competitiveness of the U.S. crypto industry.
On the 13th (local time), CEO Armstrong wrote on X, "Ironically, if a ban on crypto rewards is enacted into law, Coinbase’s profitability would improve further." He explained that this is because it would reduce the massive reward (interest) costs Coinbase currently pays to customers holding USDC.
Still, Armstrong argued that energizing the ecosystem and delivering customer benefits should take priority over short-term cost savings. "We don’t want this (a rewards ban) to happen," he said, stressing that "it’s more desirable for customers to receive rewards."
He added, "A rewards system is also essential for the U.S. to maintain the global competitiveness of regulated stablecoins."
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
