Coinbase Backs Stablecoin Yield in Trump’s GENIUS Act Debate

The GENIUS Act, a stablecoin-focused proposal recently championed by former U.S. President Donald Trump, has ignited heated discussions across the crypto and banking sectors. At the center of the storm is a critical question: Who should be allowed to offer interest on stablecoins?

Coinbase, one of the largest U.S.-based crypto platforms, is now publicly arguing that non-issuers—like exchanges and custodians—should be allowed to offer yield on stablecoins held by users. The company insists that allowing this promotes competition, innovation, and better returns for consumers without compromising financial stability.

Banks Push Back Against Stablecoin Yield

Traditional banking groups aren’t buying it. Several organizations representing the U.S. financial sector have submitted recommendations urging the Treasury Department to ban stablecoin interest altogether—even for non-issuers.

Their argument centers on maintaining parity with traditional banking regulations and preventing what they see as unregulated shadow banking. The concern is that allowing non-bank platforms to offer yield could lead to risky lending behavior outside federal oversight.

A Battle Over Control and Innovation

This emerging clash highlights a deeper divide: crypto’s open-access ethos versus traditional finance’s regulatory gatekeeping. The GENIUS Act, depending on how it’s finalized, could reshape how stablecoins function in the U.S.—either empowering broader financial access or limiting yield opportunities to federally approved entities.

As both sides lobby hard, the outcome of this debate could set the tone for stablecoin regulation and crypto finance across the U.S. in the coming years.