A senior executive at Coinbase warns that changes to the US stablecoin framework could weaken the country’s position in the global digital payments race. China’s central bank announced plans to allow commercial banks to pay interest on balances held in digital yuan wallets, enhancing the appeal of state-backed digital money.

The GENIUS Act, passed in June, prohibits stablecoin issuers from paying direct interest but allows rewards from third parties. Industry figures voice concerns about bank lobbyists trying to reopen the Act, threatening the competitive advantage of US dollar stablecoins and CBDCs.

Coinbase CEO Brian Armstrong calls any attempt to revise the GENIUS Act a “red line,” accusing banks of lobbying Congress to limit stablecoin rewards. He believes banks will eventually offer interest on stablecoins themselves and describes current lobbying efforts as “unethical” and destined to fail.

Read more at Cointelegraph: Coinbase Warns Stablecoin Rules Could Hand China an Edge