Coinbase's chief executive, Brian Armstrong, has declared that any move to revisit the GENIUS Act would be a significant overstep, labeling it a “red line.” He criticized banks for their lobbying efforts aimed at suppressing competition from stablecoins and fintech companies. In a recent statement on X, he expressed skepticism about the banks' motivations, suggesting that their current push against stablecoin rewards is ultimately futile.
The GENIUS Act, established after extensive negotiations, prohibits stablecoin issuers from directly providing interest but permits third parties to offer rewards. Armstrong's remarks were prompted by a commentary from Max Avery, a business development executive at Digital Ascension Group, who highlighted the banking sector's attempts to amend the legislation in ways that could hinder indirect yield-sharing mechanisms.
Avery noted that banks earn approximately 4% on reserves at the Federal Reserve, while consumers often see minimal returns from traditional savings accounts. He argued that the emergence of stablecoin platforms threatens this paradigm, as they can provide customers with a share of the yield, which banks are attempting to label as a “safety concern.”