Crypto CEO Brian Armstrong has called on U. S. lawmakers to ensure that bitcoin policy allows consumers to receive attention, arguing that U. S. policy don’t shield banks at the expense of innovation or the public.
Armstrong said pending regulations should permit bitcoin firms offer “onchain attention” to bitcoin holders, a feature that would allow online dollars to work like interest-bearing checking accounts, according to a post on X on March 31.
” The government don’t put its finger on the size to advantage one business over another”, Armstrong wrote. ” Bankers and crypto firms everywhere should be allowed to, and incentivized to, discuss involvement with customers. This is consistent with a complimentary business method”.
Cryptocurrencies like USDC are pegged 1: 1 to the U. S. dollars and generally backed by supply resources like as short-term Treasuries.
Right then, the offer from those resources is generally pocketed by lenders. Armstrong argued it’s time to pass that offer on to consumers, if, as Coinbase stands to benefit from wider crypto implementation, his location isn’t entirely altruistic.
Armstrong’s comments come as lawmakers hash out details of two stablecoin bills: the House’s STABLE Act and the Senate’s GENIUS Act.
The legislation is already getting caught in the crossfire of a debate over compliance with the Bank Secrecy Act ( BSA ), a cornerstone of U. S. anti-money laundering law.
House Majority Whip Tom Emmer (R-MN) said stablecoin issuers shouldn’t be forced into the BSA’s regulatory framework.
Both the GENIUS and STABLE Acts currently treat all stablecoin issuers as financial institutions under the BSA, a move that could also favor U. S. based firms while sidelining global competitors.
The BSA, enacted in 1970, requires extensive recordkeeping and customer verification from U. S. financial institutions.
Criticism has also come from other avenues. Senator Elizabeth Warren (D-MA ) accused President Donald Trump of using the legislation to enrich himself, pointing to his new DeFi venture, World Liberty Financial, which just launched a stablecoin, USD1.
” Trump is using stablecoin legislation as a grift”, Warren posted, linking the rollout to what she sees as another personal money grab.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
