Coinbase CEO: Reopening GENIUS Act Is a ‘Red Line’ for Crypto

Coinbase CEO Brian Armstrong stated that any attempt to reopen the GENIUS Act would be a "red line," accusing banks of using political pressure to stifle competition from stablecoins and fintech platforms. The existing act prevents stablecoin issuers from directly paying interest but allows third parties and platforms to offer rewards. Armstrong predicted that banks would eventually support yield on stablecoins once they recognize the opportunity, calling current lobbying efforts wasted and unethical. His comments followed an analysis suggesting that bank lobbying efforts aim to restrict these broader "rewards" mechanisms, which stablecoin platforms use to share yield with users, threatening the traditional banking model where consumer savings rates are near zero while banks earn high returns on Fed reserves. Separately, US lawmakers recently proposed a discussion draft to offer tax relief by exempting stablecoin transactions up to $200 from capital gains taxes.

(Source：Cointelegraph)