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Congress already settled this in GENIUS—reopening it now only creates uncertainty and risks the future of the US dollar as commerce moves onchain.
Shirzad framed resistance as economically motivated, writing: “It’s no mystery why big banks want rewards banned.” He detailed that U.S. banks generate about $176 billion per year from roughly $3 trillion held at the Federal Reserve and another $187 billion annually from card swipe fees, bringing total revenue from payments and deposits to more than $360 billion each year.
The Coinbase policy chief also highlighted the strategic implications for incumbents, stating:
FAQ ⏰ Why does Coinbase say stablecoin rewards threaten banks? Because stablecoin rewards could erode more than $360 billion in annual banking revenue from deposits and card fees. What role does GENIUS play in the stablecoin debate? GENIUS previously settled the issue of stablecoin rewards, and reopening it could create regulatory uncertainty. Do stablecoins reduce bank lending, according to research? No, Shirzad cited Cornell research finding stablecoin adoption does not reduce bank lending. How could stablecoin rewards impact consumers and businesses? They could lower payment costs by billions and increase competition in U.S. dollar payments.
