Coinbase CEO is actively lobbying U.S. lawmakers to protect cryptocurrency rewards

According to Bloomberg, Coinbase CEO Brian Armstrong met with lawmakers on Capitol Hill to lobby primarily against potential restrictions on stablecoin rewards.

Armstrong stated that banking lobbyists are attempting to restrict stablecoin rewards through legislation, which would hinder the crypto industry's ability to compete for funding with banks. He believes that Americans should have the right to earn higher returns on their funds, while banks are concerned that they would be forced to raise deposit rates for customers as a result.

Previously, Armstrong opposed a draft bill on digital asset market structure that was set to be reviewed by the Senate committee, after which committee chairman Tim Scott announced a delay in action on the bill. The compromise provisions in the draft originally prohibited the payment of deposit yields but allowed for other forms such as trading rewards. However, senators are expected to vote on an amendment that would comprehensively ban stablecoin rewards, with the outcome still unclear.