Coinbase Warns Stablecoin Rules Could Hand China an Edge

Faryar Shirzad, Coinbase’s chief policy officer, warned that potential amendments during Senate negotiations on the market structure bill concerning the GENIUS Act could severely damage the global competitiveness of US-issued stablecoins. This concern is amplified by China's recent move to allow commercial banks to pay interest on balances held in digital yuan wallets starting January 1, 2026, effectively transitioning the e-CNY into a "digital deposit currency" with broader monetary functions. The GENIUS Act, which passed in June, established reserve rules but prohibited issuers from paying direct interest, though third parties can offer rewards. Shirzad argued that mishandling this issue would give rivals a critical advantage. Coinbase CEO Brian Armstrong echoed this sentiment, calling any attempt to reopen the GENIUS Act a "red line" and accusing banks of lobbying Congress to limit stablecoin rewards to protect their low-yield deposit base, labeling the effort "unethical."

(Source：Cointelegraph)