Crypto Industry Leaders Urging Congress To Allow Stablecoin Issuers To Share Interest With Users: Report
Crypto executives are reportedly making a last-ditch effort to convince Congress to allow stablecoin issuers to pass on interest to holders of dollar-pegged digital assets.
Digital asset industry leaders are lobbying for stablecoin regulations to include a provision that enables issuers to share interest with users, reports Reuters.
Stablecoins maintain a stable value by being backed 1:1 by real-world assets like the US dollar. Issuers typically invest their dollar reserves in low-risk assets like US Treasuries to generate yield. Interest earned on investments could be used to incentivize holders, much like how banks pay interest to depositors.
Says Coinbase CEO Brian Armstrong,
“Unlike interest-bearing checking and savings…
