Armstrong Sounds Alarm: Crypto Rewards Ban Threatens US Competitiveness

Coinbase CEO Brian Armstrong spoke out against a potential US ban on crypto rewards, citing concerns for American consumers and competitiveness. The comments come after Coinbase's Q4 earnings miss and a $667 million loss reported Thursday.

A ban on stablecoin yields would make the 'everything exchange' more profitable, according to Armstrong, as Coinbase pays large amounts in rewards to customers holding USDC. However, he emphasized that customers should receive these rewards and that regulated stablecoins are crucial for the US's global competitiveness.

Armstrong expressed optimism about constructive crypto legislation, pointing to progress tied to the CLARITY Act. He believes lawmakers can achieve a 'market structure win-win' that advances President Trump's crypto agenda while addressing concerns from banks.