Coinbase CEO Brian Armstrong joined Ohio Senator Bernie Moreno on CNBC today, as both appeared at the World Liberty Forum at Mar-a-Lago. Coinbase (NASDAQ:COIN) is the first crypto exchange to go public and one of the largest marketplaces of its kind. Moreno, at one point, was a blockchain founder who sponsored an annual event in his home state. Both are advocates of digital finance.
As crypto market infrastructure legislation has stalled in the Senate, reports have focused on traditional banks taking issue with stablecoin holders earning returns on these assets. They fear investors will choose stablecoins over bank deposits, which are relatively safe but often yield little for depositors. As the traditional banking model is built on holding other people’s money, paying them little in return, and lending that money out at a high rate, banks have complained to policymakers that stablecoins could upend the lending model if returns or rewards are given to holders.
Armstrong stated in the interview that a “win-win” scenario was expected to emerge as negotiations continued on Capitol Hill.
“There is now a path forward,” said Armstrong on the legislation.
“A win for the crypto industry, a win for the banks, and a win for the American consumer,” stated Armstrong, adding the goal to make America the crypto capital of the world.
Senator Moreno shared that rewards on stablecoins should not be part of the equation. He added that unless you own a bank, you probably shouldn’t care, but consumers will benefit from more competition for your funds.
“We are going to get this bill across the finish line,” Moreno declared. Hopefully by April.
Armstrong noted that the smartest banks are already “leaning in” on crypto and some are partnering with Coinbase.
“It is good for the banking industry to embrace innovation … America has never been one to be stagnant and protect the encuments we want to lean into the future and make sure America stays competitive … we are existing on a global stage here,” Armstrong explained.
To build the stablecoin industry in America, we have to have stablecoin rewards, said Armstrong.
