Coinbase CEO Brian Armstrong has criticized banking groups for warning that stablecoin rewards could lead to customer withdrawals from community banks, labeling these concerns as 'false threats.' Currently, Coinbase offers a 4.1% reward for USDC holders, while Kraken provides 5.5%. Banks fear this could result in significant deposit shifts towards stablecoins, with the U.S. Treasury Borrowing Advisory Committee estimating up to $6.6 trillion could move. Armstrong argues that the banking sector's real motive is to protect its $180 billion payment business revenue. Senator Cynthia Lummis believes the issue has been addressed in the GENIUS Act and should not be revisited.