Coinbase Defends Stablecoin Rewards Amid Banking Industry Pushback

Coinbase CEO Brian Armstrong has been pushing back against banking industry efforts to restrict stablecoin rewards programs, arguing that what Coinbase offers its users is fundamentally different from a savings account.

The rewards, which have ranged from 3.75% to 4.5% depending on user status, are funded by interest earned on short-term US Treasuries through Coinbase's revenue-sharing arrangement with Circle, the company that issues USDC.

Armstrong has framed this debate in terms of US competitiveness, arguing that restricting domestic stablecoin rewards would push users toward foreign-issued digital currencies that operate outside the reach of US regulators.