Coinbase Executive Warns Stablecoin Interest Ban Could Undermine Dollar Dominance
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Stablecoin Competitive Threat: Coinbase Chief Policy Officer Faryar Shirzad warned that a Congressional ban on stablecoin interest payments could undermine the dollar's global competitiveness, particularly as China plans to offer interest on its Digital Yuan starting January 1, 2026.
- Legal Framework Impact: The People's Bank of China announced that the Digital Yuan will have the same legal status as traditional deposits, with commercial banks compensating clients based on balances, potentially giving non-U.S. stablecoins a competitive edge in the market.
- National Security Consideration: Coinbase CEO Brian Armstrong emphasized the need for U.S. stablecoins to remain globally competitive, warning that restricting stablecoin rewards could hand an advantage to China in the digital currency space, impacting national security.
- Legislative Dynamics: Banking associations have sent a joint letter to the Senate Banking Committee requesting amendments to the GENIUS Act, arguing that interest payments would distort market dynamics and affect credit creation, as the current law prohibits issuers from paying interest on stablecoins but does not explicitly address third-party platforms offering such rewards.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
