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Coinbase CEO Reacts to SEC’s Stablecoin Regulatory Clarity
Brian Armstrong, the co-founder and CEO of Coinbase, has reacted strongly to the Securities and Exchange Commission (SEC) clarification on stablecoins. The SEC’s definition of a covered stablecoin prohibits issuers from paying interest to users, a restriction that Armstrong hopes will be addressed in upcoming legislation.
In a recent tweet, Armstrong expressed his concern about consumers being unable to earn interest on stablecoins due to the current regulatory environment. He emphasized that technology already exists for this, but the law has not yet caught up. As a result, stablecoins are currently unable to enjoy the exemption that securities laws provide for issuers to pay interest to users.
Armstrong believes that U.S. stablecoin legislation should allow consumers to earn interest through stablecoins, with the interest earned from reserve assets being paid directly to stablecoin holders.
Source: https://u.today/coinbase-ceo-reacts-to-secs-stablecoin-regulatory-clarity
