{"id":18726,"date":"2026-03-27T15:12:50","date_gmt":"2026-03-27T15:12:50","guid":{"rendered":"https:\/\/cryptoted.net\/index.php\/2026\/03\/27\/coinbases-armstrong-says-big-banks-are-trying-to-choke-off-stablecoin-yields\/"},"modified":"2026-03-27T15:12:50","modified_gmt":"2026-03-27T15:12:50","slug":"coinbases-armstrong-says-big-banks-are-trying-to-choke-off-stablecoin-yields","status":"publish","type":"post","link":"https:\/\/cryptoted.net\/index.php\/2026\/03\/27\/coinbases-armstrong-says-big-banks-are-trying-to-choke-off-stablecoin-yields\/","title":{"rendered":"Coinbase\u2019s Armstrong says big banks are trying to choke off stablecoin yields"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/crypto.news\/app\/uploads\/2023\/10\/crypto-news-coinbase05.webp\" \/><\/p>\n<div>\n<p class=\"is-style-lead\">Coinbase CEO Brian Armstrong says big banks are \u201cundermining\u201d President Trump\u2019s crypto agenda by pushing CLARITY Act language that would ban 4\u20135% stablecoin yields now fueling Coinbase\u2019s $1.35b revenue line.<\/p>\n<div id=\"cn-block-summary-block_4fe29b14241c89c2300f6eb7066d3330\" class=\"cn-block-summary\">\n<p>\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/p>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Coinbase CEO Brian Armstrong says big banks are \u201cundermining\u201d President Trump\u2019s crypto agenda by trying to ban yield on stablecoins.<a href=\"https:\/\/bitcoinmagazine.com\/news\/coinbase-ceo-accuses-banks-crypto\" target=\"_blank\" rel=\"nofollow\"\/><\/li>\n<li>The fight centers on whether platforms like Coinbase can share 4\u20135% Treasury returns on stablecoins with users under the GENIUS and CLARITY Acts.<\/li>\n<li>Banks warn trillions in deposits could migrate to crypto if yields are allowed, while Coinbase defends a $1.35 billion stablecoin revenue stream.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>In a Fox Business interview, <a href=\"https:\/\/crypto.news\/coinbase-and-better-prepare-crypto-mortgages-backed-by-fannie-mae\/\">Coinbase<\/a> CEO Brian Armstrong accused major U.S. banks of \u201ctrying to undermine the president\u2019s crypto agenda\u201d by pushing to strip Americans of the ability to earn yield on stablecoins. He described the latest Senate draft as a \u201cgiveaway to the banks\u201d that would \u201cban their competition\u201d by shutting down yield on digital dollars. Armstrong argued banks are \u201ctaking money out of the pockets of hardworking, average Americans and putting it into the coffers of big banks hitting record profits.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">It\u2019s more than yield on stablecoins<\/p>\n<p>It\u2019s about controlling a wealth gap and continuing to enlarge it<\/p>\n<p>The passing Genius Act NOW is great until you get left out <\/p>\n<p>Stop being impatient <a rel=\"nofollow\" href=\"https:\/\/t.co\/8lw5UvjF2k\">pic.twitter.com\/8lw5UvjF2k<\/a><\/p>\n<p>\u2014 Wendy O (@CryptoWendyO) <a href=\"https:\/\/twitter.com\/CryptoWendyO\/status\/2037510234688876661?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">March 27, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Under the 2025 GENIUS Act, stablecoin issuers must fully back tokens with cash or short-term Treasuries and are barred from paying interest directly, but exchanges like <a href=\"https:\/\/crypto.news\/coinbase-challenges-senate-compromise-on-stablecoin-rewards\/\">Coinbase <\/a>have been allowed to pass on roughly 4\u20135% Treasury returns to customers via rewards programs. A new CLARITY Act compromise circulating in Washington would prohibit stablecoin yield \u201cdirectly, indirectly, and through anything economically or functionally equivalent to bank interest,\u201d while allowing only activity-based rewards. Coinbase has told senators it \u201ccannot support\u201d the current text.<\/p>\n<h2 class=\"wp-block-heading\">Trump\u2019s Support and the Banking Lobby\u2019s Fears<\/h2>\n<p>President Donald Trump has publicly sided with crypto firms, accusing banks on Truth Social of \u201cthreatening and undermining\u201d the GENIUS Act and \u201cholding the <a href=\"https:\/\/crypto.news\/coinbase-brings-exchange-order-book-and-futures-data-on-chain-via-chainlink-datalink\/\">CLARITY Act<\/a> hostage\u201d over stablecoin yield. \u201cAmericans should earn money on their money,\u201d Trump wrote, urging Congress to move the market-structure bill \u201cASAP.\u201d According to reporting from Bloomberg, banks have cited Treasury studies suggesting they could lose up to hundreds of billions in deposits if stablecoin yields are permitted, warning this could pressure smaller institutions and weaken loan funding.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>The numbers at stake explain the intensity. Coinbase generated about $1.35 billion in stablecoin revenue in 2025, roughly 19% of its total, driven largely by interest on USDC reserves backed by U.S. Treasuries. Total stablecoin volume reached an estimated $33 trillion last year, with USDC accounting for around $18.3 trillion of that flow. Analysts at Bloomberg Intelligence have projected that if USDC payment adoption accelerates, Coinbase\u2019s stablecoin revenue could grow two- to sevenfold from its 2025 base.<\/p>\n<p>For now, the yield fight has become the fulcrum of U.S. crypto policy: banks lobbying to close what they call a \u201cloophole,\u201d crypto platforms lobbying to preserve a core revenue line and a 4\u20135% return for users. With Trump publicly pressuring banks and Armstrong warning of \u201cregulatory capture,\u201d the eventual shape of the GENIUS\u2013CLARITY framework will determine whether stablecoins remain a high-yield alternative to bank deposits or revert to being low-yield digital cash.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><br \/>\n<br \/><a href=\"https:\/\/crypto.news\/coinbases-armstrong-says-big-banks-are-trying-to-choke-off-stablecoin-yields\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase CEO Brian Armstrong says big banks are \u201cundermining\u201d President Trump\u2019s crypto agenda by pushing CLARITY Act language that would ban 4\u20135% stablecoin yields now fueling Coinbase\u2019s $1.35b revenue line. Summary Coinbase CEO Brian Armstrong says big banks are \u201cundermining\u201d President Trump\u2019s crypto agenda by trying to ban yield on stablecoins. The fight centers on [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":18727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[23],"tags":[],"kronos_expire_date":[],"class_list":["post-18726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"_links":{"self":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/18726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/comments?post=18726"}],"version-history":[{"count":0,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/18726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media\/18727"}],"wp:attachment":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media?parent=18726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/categories?post=18726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/tags?post=18726"},{"taxonomy":"kronos_expire_date","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/kronos_expire_date?post=18726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}