Coinbase CEO Brian Armstrong advocates for changes to the GENIUS Act as it moves through Congress, calling for modifications related to interest payments by stablecoin issuers.
Key Influences
Key figures include Armstrong and Senator Bill Hagerty, who introduced the bill on February 4, 2025. Armstrong emphasizes the need to foster innovation by allowing interest payments, aligning with Coinbase's regulatory strategy.
"We cannot stifle innovation by prohibiting stablecoin issuers from paying interest directly to users." - Brian Armstrong, CEO, Coinbase
Bill Details
The GENIUS Act mandates stablecoins be backed 1:1 by U.S. Dollars, influencing the crypto ecosystem. The bill allows dual oversight: federal (OCC) or state level, affecting USD-pegged stablecoin commerce. Passing this legislation could impact entities like Circle's USDC. Senate Democrats' waning support may delay GENIUS Act enactment.
Global Impact
The act could set a precedent akin to the EU's MiCA framework, influencing global policies. Armstrong's advocacy aligns traditional finance and DeFi interests around yield generation. The Senate Banking Committee passed the act in March 2025 with an 18-6 vote. Changes in political support may affect the bill's progress. The Senate Majority Leader is pushing for expedited consideration, reflecting its priority amidst the debate.
Potential outcomes include refined regulatory environments for stablecoins and crypto innovations. Data reveals evolving market trends, highlighting significant shifts in financial regulations and technological adaptations.
