Coinbase Supports Non-Issuer Yield on Stablecoins, Sparking Regulatory Debate

Coinbase is taking a prominent stance in the debate surrounding the GENIUS Act, proposing that non-issuers like exchanges and custodians should be allowed to offer yield on stablecoin holdings. This contrasts with banking groups’ push for a ban on all stablecoin interest payments, even for those entities not involved in issuing the stablecoins themselves. The clash reflects the growing tension between crypto’s open-access model and traditional finance’s regulatory structure.