Hill Rejects Interest-Bearing Stablecoins

Hill Rejects Interest-Bearing Stablecoins Despite Armstrong's Plea

Representative French Hill, Chair of the House Committee on Financial Services, recently rejected proposals to allow interest-bearing stablecoins. This decision comes despite a public appeal from Coinbase CEO Brian Armstrong, who advocated for this policy as a "win-win" for consumers and the economy.

Hill's Stance on Stablecoin Regulation

While Hill has been a prominent voice in pushing for new stablecoin regulations, his opposition to interest-bearing stablecoins highlights the complexities of navigating the crypto industry's political landscape. He stated, "I hear the point of view, but I don’t think that there’s consensus among the parties or the Houses [of Congress] on having a dollar-backed payment stablecoin pay interest to the holder of that stablecoin."

Armstrong's Counterargument

Armstrong countered that allowing interest on stablecoins would benefit consumers and foster a free market approach, stating, "US stablecoin legislation should allow consumers to earn interest on stablecoins. Banks and crypto companies alike should both be allowed to, and incentivized to, share interest with consumers."

Implications for the Crypto Industry

This rejection underscores the nascent stage of crypto's political influence. While the industry has seen recent victories, such as the SEC dropping its lawsuit against Coinbase and Trump's support for crypto, resistance remains, particularly among key legislators. This highlights the need for ongoing engagement and clear communication to shape future regulations.

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Keywords: stablecoin regulation, French Hill, Brian Armstrong, Coinbase, crypto regulation, interest-bearing stablecoins, House Committee on Financial Services, blockchain security