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Stock impact report

Coinbase CEO Says Banks Will Eventually Demand Interest-Paying Stablecoins [Yahoo! Finance]

Coinbase Global, Inc. - 3Class A (COIN) 
US:NASDAQ Investor Relations: convertedorganic.com
Company Research Source: Yahoo! Finance
Armstrong's forecast, posted December 27 on X, contradicts the banking sector's current efforts to strip yield-generating features from the GENIUS Act. He argued that lenders are currently protecting low-cost deposits but will be forced to adopt the technology to compete for capital. "My prediction is the banks will actually flip and be lobbying FOR the ability to pay interest and yield on stablecoins in a few years," Armstrong wrote. The prediction reframes the current legislative battle over the GENIUS Act as more than a regulatory dispute. It presents the fight as a collision between legacy profit protection and inevitable market evolution. The GENIUS Act, signed in July 2025, prohibits stablecoin issuers such as Circle and Tether from paying interest directly to holders. However, it permits intermediaries—such as exchanges—to pass yield from the underlying Treasury reserves to users. Due to this, banking lobbyists are petitioning lawmakers to reopen the legislation an Show less Read more
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