Coinbase News: Rep. Hill Rejects Interest-Bearing Stablecoin Proposal

In a recent development in the cryptocurrency sphere, a key US lawmaker has rejected a proposal by Coinbase, one of the largest cryptocurrency exchanges in the world, to introduce interest-bearing stablecoins. This move underscores the ongoing debate and regulatory challenges surrounding stablecoins in the United States.

Representative Hill Rebukes Coinbase CEO’s Request for Interest-Bearing Stablecoins

Representative French Hill, a vocal supporter of new stablecoin regulations, rejected the request for interest-bearing stablecoins made by the CEO of Coinbase. Hill stated that there isn’t consensus among the parties or the Houses of Congress on having a dollar-backed payment stablecoin pay interest to the holder of that stablecoin. Stablecoin regulations are a top priority for US crypto policy, and significant momentum is building behind pro-industry regulations. President Trump also claimed that stablecoins will play a role in dollar dominance.

Coinbase CEO Advocates for Onchain Interest-Based Stablecoin Legislation

Coinbase CEO Brian Armstrong argues that stablecoin holders should be allowed to earn interest, similar to traditional savings accounts. With major stablecoin bills moving through Congress and a pro-crypto administration in place, Armstrong sees this as a crucial moment to shape consumer-friendly policies in the U.S. The discussion comes as World Liberty Financial, a crypto platform tied to Donald Trump’s family, prepares to launch its own stablecoin. Armstrong’s views have generated widespread debate on social media.