Coinbase CEO Brian Armstrong took to X on Monday to make a case for why the U.S. should allow stablecoin holders to earn interest similar to a traditional savings account, generating widespread debate on social media.
Armstrong argues that legislation allowing stablecoin holders to earn interest on stablecoins would democratize “access to the market yield rate” and give “regular people a fair shot at growing and maintaining their wealth.”
According to Armstrong’s March 31 X post, the crypto executive believes that onchain interest would grant stablecoins the opportunity to “function as a form of payment” while offering consumers the ability to directly garner interest themselves.
“Why wouldn’t these be tokenized shares in money market funds subject to the securities laws?” said one user. “Doesn’t this ultimately ask the U.S. government to pay crypto users—in dollars—for making their dollars digital?” asked another.
Despite the digital asset entrepreneur’s enthusiasm, not everyone in the crypto community was as receptive to his policy ideas.
Armstrong’s arguments come amid news that World Liberty Financial, the crypto platform affiliated with U.S. President Donald Trump and his family, has plans to launch its own stablecoin known as USD1. The timing is noteworthy. With major stablecoin legislation currently moving through the U.S. Congress, critics of the move claim it could potentially affect political decision-making.
While the debate over interest-bearing stablecoin continues, the broader stablecoin landscape is evolving rapidly.
“We can choose to level the playing field and ensure these laws pave a way for all regulated stablecoins to deliver interest directly to consumers, the same way a savings or checking account can.”
“We have a huge opportunity in front of us right now with a pro-crypto administration and Congress actively working on new stablecoin legislation,” he said.
However, Armstrong indicated that upcoming congressional discussions could serve as a key platform for advancing consumer-friendly stablecoin policy.