Coinbase’s Armstrong says big banks are trying to choke off stablecoin yields

Coinbase CEO Brian Armstrong says huge banks are “undermining” President Trump’s crypto agenda by pushing CLARITY Act language that may ban 4–5% stablecoin yields now fueling Coinbase’s $1.35b income line.

In a Fox Enterprise interview, Coinbase CEO Brian Armstrong accused major U.S. banks of “trying to undermine the president’s crypto agenda” by pushing to strip Americans of the ability to earn yield on stablecoins. He described the latest Senate draft as a “giveaway to the banks” that would “ban their competition” by shutting down yield on digital dollars. Armstrong argued banks are “taking money out of the pockets of hardworking, average Americans and putting it into the coffers of big banks hitting record profits.”

Beneath the 2025 GENIUS Act, stablecoin issuers should absolutely again tokens with money or short-term Treasuries and are barred from paying curiosity straight, however exchanges like Coinbase have been allowed to cross on roughly 4–5% Treasury returns to clients by way of rewards applications. A brand new CLARITY Act compromise circulating in Washington would prohibit stablecoin yield “straight, not directly, and thru something economically or functionally equal to financial institution curiosity,” whereas permitting solely activity-based rewards. Coinbase has instructed senators it “can not assist” the present textual content.

Trump’s Help and the Banking Foyer’s Fears

President Donald Trump has publicly sided with crypto corporations, accusing banks on Reality Social of “threatening and undermining” the GENIUS Act and “holding the CLARITY Act hostage” over stablecoin yield. “People ought to earn cash on their cash,” Trump wrote, urging Congress to maneuver the market-structure invoice “ASAP.” In keeping with reporting from Bloomberg, banks have cited Treasury research suggesting they may lose as much as a whole bunch of billions in deposits if stablecoin yields are permitted, warning this might stress smaller establishments and weaken mortgage funding.

The numbers at stake clarify the depth. Coinbase generated about $1.35 billion in stablecoin income in 2025, roughly 19% of its complete, pushed largely by curiosity on USDC reserves backed by U.S. Treasuries. Whole stablecoin quantity reached an estimated $33 trillion final 12 months, with USDC accounting for round $18.3 trillion of that circulation. Analysts at Bloomberg Intelligence have projected that if USDC cost adoption accelerates, Coinbase’s stablecoin income may develop two- to sevenfold from its 2025 base.

For now, the yield struggle has turn into the fulcrum of U.S. crypto coverage: banks lobbying to shut what they name a “loophole,” crypto platforms lobbying to protect a core income line and a 4–5% return for customers. With Trump publicly pressuring banks and Armstrong warning of “regulatory seize,” the eventual form of the GENIUS–CLARITY framework will decide whether or not stablecoins stay a high-yield different to financial institution deposits or revert to being low-yield digital money.