Coinbase Slams Banking Lobby’s “Unamerican” Push to Stifle Stablecoin Perks – Hilarity Ensues

by

Well, well, well, it seems Coinbase has had enough of the US banking associations trying to rain on everyone’s crypto parade. The popular exchange has launched a rather sharp critique at the banking lobby after they suggested that federal regulators should ban those delightful little perks like cashback, merchant rewards, and discounts for customers who dare to pay with stablecoins. Because, you know, anything that gives consumers a break must be evil, right? 🤔

Now, the banking groups argue that these perks are a form of “indirect interest.” Oh, naturally, because anything that doesn’t involve swiping a credit card or racking up ridiculous fees must surely be up to no good. 🙄

“Unamerican” Power Grab – Oh, The Drama!

Enter Faryar Shirzad, Coinbase’s chief policy officer, who took to X (formerly known as Twitter, for the uninitiated) to blast this proposal as “unamerican” and downright authoritarian. He warned that this move would not only stifle competition but would also block consumers from spending their own hard-earned cash however they see fit. Can’t have that now, can we? ✋

The whole dispute is a jolly little drama about how regulators should apply the GENIUS Act, a new federal law passed in July 2025 that bans stablecoin issuers from paying interest or yield to holders. The banking lobby now wants to extend that rule to also include prohibiting merchants from offering perks to customers who use stablecoins. Because apparently, when you use your own money, it’s not really your money anymore… or something. 🤷‍♂️

According to Coinbase’s policy team, the banking lobby’s interpretation of the law is a bit of a stretch. In their view, Congress only aimed to restrict stablecoin issuers from paying interest – not merchants, fintechs, or anyone else who dares to offer benefits in exchange for stablecoin payments. If this rule were to go through, it would mean an absurd, far-reaching impact on ordinary practices like merchant discounts or even paying interest on tenant deposits. All because someone might, heavens forbid, use a stablecoin. 💸

Coinbase isn’t having any of it. They’ve pointed out that the real reason behind the push is simple: banks want to protect their precious payment fees. I mean, why else would they bother, right? In 2024, US merchants paid over $180 billion in card fees. Yes, you read that correctly. $180 billion. So much for innovation, huh? 🏦💳

“A durable GENIUS Act rule should stick to the statutory text: issuers may not pay interest or yield to stablecoin holders for holding or using the token. The notion of an ‘indirect’ prohibition is an attempt to stifle stablecoin demand and thereby protect payments profits, and there is something unamerican about bank lobbyists pressing regulators to tell stablecoin customers what they can and cannot do with their own money after it is issued. Common sense should prevail.”

Stablecoins Set to Go 10x by 2030 – Who’s Laughing Now?

Meanwhile, Treasury Secretary Scott Bessent seems to be on the stablecoin hype train, predicting that the stablecoin market, which currently stands at a respectable $315 billion, could explode by ten times by 2030. And how, you ask? Thanks to the GENIUS Act, of course! 🏦💥

Speaking at the Treasury Market Conference, Bessent shared that stablecoins, along with money-market funds, could play a much larger role in the future of US debt financing. Yes, stablecoins – those mysterious digital coins that don’t crash every time Elon Musk sneezes – might just become a cornerstone of federal financing. How delightful! 😏

This marks the first time a Treasury Secretary has openly suggested that stablecoins could be used to fund the country’s ever-growing debt. And, of course, this could benefit centralized exchanges like Coinbase, which stand to profit from the increase in trading activity. More drama, more money, more fun. 😆

Read More

2025-11-15 01:53