Coinbase Warns U.S. Stablecoin Yield Ban Gives China an Edge
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Risk of Yield Restrictions: Coinbase's Chief Policy Officer Faryar Shirzad warns that the GENIUS Act, which prohibits U.S. dollar stablecoins from paying interest, could undermine U.S. competitiveness in digital currencies, especially as countries like China begin offering interest on digital yuan holdings.
- Market Impact Analysis: The act applies to the two largest stablecoins, USDT and USDC, which together represent a $217 billion market, requiring issuers to report reserves monthly, potentially disadvantaging U.S. stablecoins in attracting institutional investors.
- Challenges for Banking Systems: Despite the rise of stablecoins, approximately $27 trillion in Nostro and Vostro accounts remain the primary tools for cross-border payments, with projections suggesting this could exceed $50 trillion, indicating traditional banks' cautious stance towards stablecoins and CBDCs.
- China's Digital Yuan Push: The People's Bank of China plans to implement a new policy on January 1, 2026, allowing commercial banks to pay interest on digital yuan holdings, marking a shift from digital cash to a
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.
