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Coinbase and PayPal continue to offer stablecoin rewards in response to 'GENIUS Act' regulatory controversy
Summary: According to Decrypt, Coinbase CEO Brian Armstrong stated during last Thursday's earnings call that the company will continue to offer USDC holding rewards to users, citing it as a key differentiator to attract users. Despite the 'GENIUS Act' prohibiting stablecoin issuers from paying interest or returns, Armstrong clarified that they are not the issuer and ...
According to Decrypt, Coinbase CEO Brian Armstrong stated during last Thursday's earnings call that the company will continue to offer USDC holding rewards to users, citing it as a key differentiator to attract users. Despite the 'GENIUS Act' prohibiting stablecoin issuers from paying interest or returns, Armstrong clarified that they are not the issuer and the payment is a reward. Coinbase currently offers a 4.1% annual percentage yield on USDC deposits to U.S. users. The act only applies to issuers like Circle, the issuer of USDC, and does not prohibit trading platforms from offering rewards. A Senate staffer explained that the act aims to prevent stablecoins from being seen as traditional deposit tools. Additionally, PayPal is also implementing a similar strategy by offering a 3.7% annual percentage yield to users holding its stablecoin PYUSD to attract more customers.
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Link: Coinbase and PayPal continue to offer stablecoin rewards in response to 'GENIUS Act' regulatory controversy [Copy]
