Brian Armstrong, CEO of Coinbase, calls for the update of outdated U.S. financial regulations so that stablecoin users can benefit more from the assets backing these digital dollars.
Stablecoins as the New Interest-Bearing Accounts
Armstrong describes stablecoins as a modern version of interest-bearing checking accounts. He believes stablecoin holders should earn interest from reserve assets, similar to traditional bank accounts. However, current U.S. securities laws prevent issuers from passing along interest without undergoing complex regulations.
Regulatory Lag Holding Back Innovation
Despite rapid advancements in crypto and fintech, regulations are notably lagging behind. Armstrong points out that while the infrastructure exists to distribute interest to stablecoin users, the U.S. does not yet have a legal framework to support this. Specific legislation is needed to transform stablecoin products into more user-friendly and profitable options.
Call for Reforms
Armstrong calls for reforms that would align financial laws with the capabilities of modern blockchain systems. He argues that such changes would not only benefit consumers but also strengthen U.S. leadership in digital finance.
Updating the legislation could enhance the appeal of stablecoins, providing users with additional benefits from their assets and improving the competitive standing of the U.S. in the global financial sector.
