Coinbase CEO Urges Congress to Allow Interest on Stablecoins Amid Regulatory Push

Coinbase CEO Brian Armstrong is advocating for stablecoin users to earn interest on their holdings as Congress progresses with stablecoin regulation. In a post on Monday, Armstrong cautioned against measures that would hinder stablecoins from offering interest, similar to savings accounts, arguing it would harm consumers and the U.S. economy. This follows Sen. Kirsten Gillibrand's statements on March 26 at the 2025 DC Blockchain Summit, where she expressed concerns that stablecoin interest payments could undermine traditional banking. Armstrong contends that preventing interest on stablecoins would distort the free market, noting that in 2024, stablecoin issuers earned an average Federal Reserve funds rate of 4.75%, while savings accounts only offered 0.41% interest, potentially allowing stablecoins to outpace inflation.