Coinbase has issued a warning that stablecoin rewards could threaten a $360 billion revenue stream for U.S. banks as lawmakers revisit the issue. Coinbase Chief Policy Officer Faryar Shirzad highlighted that stablecoin rewards could reshape dollar payments and increase competition in fees, potentially moving commerce onchain across the U.S. financial system. Shirzad noted that U.S. banks currently generate significant revenue from deposits and card fees, which could be impacted by the introduction of stablecoin rewards.
Shirzad argued that stablecoin rewards do not reduce banks' lending capabilities but introduce real competition in payments, potentially leading to billions in savings for consumers and businesses. He emphasized that stablecoin adoption does not affect bank lending, citing research from Cornell. Shirzad concluded that banks oppose stablecoin rewards not out of prudential concern but due to the threat to their protected revenue streams, advocating for the preservation of the GENIUS Act to maintain competitive U.S. payment systems.
Coinbase Warns Stablecoin Rewards Could Disrupt $360B Banking Revenue
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