Coinbase CEO Brian Armstrong predicts US banks will shift their stance on stablecoin regulation, eventually lobbying Congress to allow interest payments on digital assets. The GENIUS Act currently prohibits stablecoin issuers from paying interest directly to holders, leading to banking lobbyists pushing for changes to compete with non-bank platforms offering 4-5% yields on Treasury reserves. Armstrong calls attempts to amend the law a “red line” for the crypto industry, criticizing banking lobby efforts as “100% wasted.” A coalition of 125 crypto companies, including Coinbase, opposes revisions, citing regulatory certainty concerns.

Read more at Yahoo Finance: Coinbase CEO Says Banks Will Eventually Demand Interest-Paying Stablecoins