Coinbase Defies Banking Lobby on Stablecoin Interest Provisions

The debate over the CLARITY Act's stablecoin interest provision has intensified. Coinbase Chief Policy Officer Faryar Shirzad is challenging the American Bankers Association's (ABA) warning that such a measure could trigger deposit outflows from community banks.

Shirzad argues in an op-ed that the ABA's concerns lack empirical support, citing data from Coinbase's own experience. The exchange has paid interest on USDC for over four years, and during this time, community bank deposits actually increased by $482 billion, or 26%, from June 2019 to March 2026.

This suggests that stablecoin rewards would not necessarily lead to significant deposit migration. Shirzad also framed the CLARITY Act as a potential boon for banks, describing it as the broadest legal authority granted to the sector since the Gramm-Leach-Bliley Act of 1999.