TechFlow, September 18 — Coinbase CEO Brian Armstrong recently told Congress that banks' opposition to cryptocurrency exchanges offering stablecoin rewards, citing systemic risk, is creating a "false threat." Currently, Coinbase offers a 4.1% reward for USDC holders, while banks worry this could lead to significant deposit outflows into stablecoins. The U.S. Treasury's Borrowing Advisory Committee estimates up to $6.6 trillion in deposits could shift to stablecoins. Armstrong believes the banking industry's true intent is to protect its $180 billion payment revenue. In response, Wyoming Republican Senator Cynthia Lummis stated this issue has already been addressed in the GENIUS Act and should not be revisited.
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