Coinbase CEO Calls for US to Allow Interest on Stablecoins

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Hold onto your butts, folks! Coinbase’s big boss Brian Armstrong is on a mission, and it involves letting us earn a little something-something on our stablecoins. Because who doesn’t want free money while we wait for our avocado toast to toast? 🥑✨

In a riveting rant on X (yes, that X), Armstrong put forth the groundbreaking suggestion that allowing stablecoin interest could seriously uplift consumers, boost global financial access, and—get this—make America’s economy shine bright like a diamond. 💎💰

He broke it down for us: stablecoins are typically backed 1:1 by good ol’ Uncle Sam’s green, usually cozying up next to low-risk assets like U.S. Treasuries. Curious, isn’t it? The interest just hangs out, sipping piña coladas, while issuers take a hefty nap instead of passing on the good stuff to consumers like us. 😴🍹

Onchain interest: The magical unicorn for US consumers! 🦄

According to our friend Armstrong, “onchain interest” could be like that shiny interest-bearing checking account you’ve always dreamed of—one that actually lets you sip from the fountain of yields that match the Federal Reserve’s benchmark rate. Ah, sweet financial whisperings! 🎤💸

“U.S. consumers win,” he declared, as if he just solved world hunger. “They will benefit the most from onchain interest, because they’re getting hurt the most without it.”

Apparently, U.S. consumers are playing an all-too-real game of “How Low Can Your Interest Go?” while market rates do a little jig. Meanwhile, billions of people worldwide are missing out on banking fun and could actually gain an interest-yielding ticket to the dollar show with stablecoins. 🎟️💵

Oh, and wait, there’s more! Armstrong pointed out that stablecoins are basically the VIP list holders of U.S. Treasuries, waving bye-bye to dollar dominance, while we sit here wondering why our interest rates are as low as our school lunch pizza was in 7th grade. 🍕

He also finger-wagged about regulatory roadblocks that prevent stablecoins from sprinkling interest in the way banks do. Armstrong called on lawmakers to get their acts together in the next round of stablecoin legislation—pleading for a free-market approach to keep innovation alive and stylish in the U.S. 🕶️

“So why aren’t we doing this today?” he pondered, scratching his chin. “The tech is all there, but the law hasn’t caught up.”

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2025-03-31 20:01