The CEO of Coinbase is actively lobbying U.S. congressional lawmakers to protect stablecoin rewards.

Techub News reported, according to Bloomberg, that Coinbase CEO Brian Armstrong met with lawmakers on Capitol Hill, primarily lobbying against potential restrictions on stablecoin rewards. Armstrong stated that banking lobbyists are attempting to use legislation to limit stablecoin rewards, which would hinder the crypto industry's ability to compete with banks for funds. He believes Americans should have the right to earn higher yields from their funds, and banks are concerned this would force them to raise deposit rates for customers.

Previously, Armstrong opposed a draft crypto market structure bill planned for review by a Senate committee, after which committee chairman Tim Scott announced a delay in action on the bill. A compromise clause in the draft originally prohibited paying deposit-like yields but allowed other forms such as transaction rewards. However, senators are expected to vote on an amendment that would comprehensively ban stablecoin rewards, with the outcome still unclear.