Currently, stablecoin issuers earn interest on the U.S. Treasuries and other cash equivalents they hold to maintain a peg on the dollar, but don’t pass any interest along to the tokens’ holders. Proponents of the change argue that issuers should be allowed to do so because they already hold the assets and earn interest and that it is not fair that banks can share interest with consumers while crypto companies can’t.
The report cited Coinbase CEO Brian Armstrong saying, “The government shouldn’t put its thumb on the scale to benefit one industry over another.”
