Latest news with #DCBlockchainSummit
Yahoo
04-04-2025
- Business
- Yahoo
Coinbase CEO Slams Legislative Push Against Interest Payments To Stablecoin Holders
Coinbase CEO Brian Armstrong argues that opposing interest-yielding stablecoins hurts consumers and the U.S. Armstrong's argument appears to be a response to recent statements from Sen. Kirsten Gillibrand (D-NY). The Coinbase chief is not the only expert who believes interest-yielding stablecoins should not be blocked. Amid President Donald Trump's backing, the crypto industry looks set to receive long-clamored-for regulations, starting with stablecoins. As negotiations on likely bills progress in Congress, Coinbase Global (NASDAQ:COIN) CEO Brian Armstrong has urged lawmakers not to prevent users from earning interest on their stablecoin holdings. Dollar stablecoins typically maintain their peg by holding reserves in highly liquid and safe investments like short-term U.S. Treasury bonds. In the status quo, however, issuers pocket the yield on these investments, as stablecoins do not benefit from the same exemptions under securities law that allow savings or interest-bearing checking accounts to pay out interest. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. As the U.S. works towards stablecoin rules, Armstrong warned in an X post on Monday against efforts to protect the legacy banking system by preventing stablecoins from paying out interest like a regular savings or interest-bearing checking account. According to Armstrong, such efforts would only hurt consumers and the U.S. While Armstrong did not explicitly state it, his post appears to be a response to recent statements from Sen. Kirsten Gillibrand (D-NY). Speaking at the 2025 DC Blockchain Summit on March 26, Gillibrand asserted that allowing stablecoin interest payments will cripple the financial system customers relied on for business loans and mortgages by discouraging deposits to local banks. Armstrong, however, argues that this position goes against the ideals of the free market system. 'The government shouldn't put it's [sic] thumb on the scale to benefit one industry over another. Banks and crypto companies alike should both be allowed to, and incentivized to, share interest with consumers. This is consistent with a free market approach,' he wrote. Trending: Hasbro, MGM, and Skechers trust this AI marketing firm — . Armstrong posited that interest-bearing stablecoins would benefit customers by potentially allowing them to beat inflation. As highlighted by Armstrong, the average Federal Reserve funds rate earned by stablecoin issuers in 2024 was 4.75% as inflation hovered around 3%. In comparison, the average savings account offered customers only 0.41% interest. According to Armstrong, the better wealth preservation potential of interest-bearing stablecoins would also benefit the U.S. economy by encouraging spending, saving, and investments. 'Unleashing onchain interest is a win-win,' he submitted. Armstrong is not the only vocal crypto proponent who has criticized Gillibrand's argument against interest-bearing stablecoins. Bitwise CIO Matt Hougan compared her position to preventing websites from posting stories that a physical newspaper had not printed first to protect the newspaper further argued that the senator's concern about lending for everyday Americans would still be satisfied by the free market, citing mortgage providers as one possible option. Meanwhile, like Armstrong, Hougan argued that the current system only hurt everyday consumers. 'Wealthy individuals already have ways to opt-out of the zero-interest-cartel via money market funds and high-balance interest-bearing accounts. Wouldn't it be nice if every American could have easy access to a way to gather interest on their money?' he quipped. Read Next:Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? COINBASE GLOBAL (COIN): Free Stock Analysis Report This article Coinbase CEO Slams Legislative Push Against Interest Payments To Stablecoin Holders originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Bitcoin could halve U.S. debt in 20 years, says Senator Cynthia Lummis
MicroStrategy's CEO Michael Saylor stirred conversation at the DC Blockchain Summit as he declared Bitcoin 'the Manifest Destiny for the United States of America' in a sit-down with Senator Cynthia Lummis. On March 27, Lummis in a conversation with Michael Saylor stated the need for a Bitcoin strategic Reserve saying, 'We have a strategic oil reserve, we have a strategic gold reserve, we have a strategic cheese reserve. Bitcoin is digital gold.' Lummis also said during her discussion, 'We were able to convert [mineral wealth] into cash and put it in a fully diversified asset allocation that continues to produce revenue.' Emphasizing the federal government's monumental debt of $36 trillion, Lummis contended that Bitcoin's scarcity, immutability, and storability render it an optimal long-term asset for the nation's resilience. 'If it is held for 20 years, pursuant to the best modeling available, we can reduce our national debt by half,' she added. Today, living under the weight of federal debt, Lummis considers Bitcoin a new solution to an ancient problem. She said, 'I've kind of been looking for the Bitcoin strategic reserve my whole life.' The comments provide momentum to the increasing chorus in Washington that digital assets should play an official role in U.S. fiscal and economic strategy. Saylor's statement released on X within an hour was followed by a 0.11% Bitcoin spike, pushing the asset to $87,273.47. The market cap has increased by 0.09% at press time. Saylor's endorsement seemed to reverberate through the broader market. The fear and Greed Index soared from neutral 50 to 'Greed' 65, showing a distinct and drastic change in market sentiment.
Yahoo
28-03-2025
- Business
- Yahoo
Wyoming State Gears Towards Launching a Stablecoin This Year
Wyoming state is making steps towards launching a stablecoin later this year, which could be the first fiat-backed and fully reserved token issued by a public entity in the U.S., state officials said at the DC Blockchain Summit on Wednesday. The Wyoming Stable Token (WYST) is currently being tested on Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon and Coinbase's Base testnets, according to a press release. The state is working with LayerZero, a blockchain interoperability firm, to facilitate token deployment across these networks, said Wyoming Stable Token Commission Executive Director Anthony Apollo on stage. Speaking at the event, Governor Mark Gordon and Apollo said that the token's testing phase will continue through the second quarter, with a potential full launch targeted for July. 'The next phase of testing and customizing smart contracts is an imperative step towards delivering the best product for Wyoming and stable token holders,' said Anthony Apollo. 'Once launched, WYST will grant holders the ability to transmit dollar-denominated transactions of any value, anywhere in the world, nearly instantly, with significantly reduced fees compared to traditional ACH or wires.' Stablecoins are one of the fasting-growing crypto sectors with now nearly $230 billion market value. They are blockchain-based tokens with a fixed price, predominantly to the U.S. dollar, and increasingly popular for payments and remittances. Buzz around the asset class accelerated over the past months as the Trump administration elevated stablecoin regulation to the top of its crypto agenda, with bills advancing in both the House of Representatives and the Senate. Read more: U.S. House Stablecoin Bill Poised to Go Public, Lawmaker Atop Crypto Panel Says Global banks and digital asset firms are keen to capitalize on the opportunity. Asset management behemoth Fidelity Investments reportedly develops a stablecoin, while World Liberty Financial (WLFI), a decentralized finance protocol backed by President Donald Trump, confirmed it too has plans to offer a stablecoin.
Axios
27-03-2025
- Business
- Axios
Wyoming's stablecoin enters testing
The state of Wyoming is testing its stablecoin on multiple blockchains, state officials confirmed Wednesday. Why it matters: As the U.S. government gets closer to passing laws establishing a legal framework for stablecoins, more entities are seeking to launch these instruments. State of play: PayPal, probably the first major brand in the game, made news with its stablecoin a little over a year ago. Fidelity is testing one. Custodia and Vantage Banks just issued one. Bank of America said it will likely get in on it, too. And World Liberty Financial, the DeFi effort supported by the Trump Organization, announced its own this week. Wyoming's is notable in that it comes from domestic government. And the coin, WYST, would be a flex by a state that has long embraced the crypto industry. The widening race to develop stablecoins is being driven by the expectation of lessening regulatory friction, but Wyoming Gov. Mark Gordon yesterday said the state — which started this process with 2023 legislation — wants to be above all that. What they're saying: Gordon, speaking at the Chamber of Digital Commerce's DC Blockchain Summit Wednesday, explained why he thought a conservative approach to a state stablecoin makes sense. "Everybody's seeing trillions of dollars coming their way. Everybody wants to kind of establish a new thing right away," he said. Gordon wants Wyoming to be "prudent," with a slightly overcollateralized backing and a strong commission to bring the token about. Profits from the coin will support the school system. Friction point: Wyoming's process ruffled some feathers. Charles Hoskinson, Wyoming resident and founder of the Cardano blockchain, has expressed anger that his chain didn't get a chance to make a bid to be part of the process.
Bloomberg
26-03-2025
- Business
- Bloomberg
Wyoming Governor Expects State to Issue Its Own Stablecoin by July
Wyoming plans launch its own cryptocurrency as soon as July, making it the first fiat-backed and fully-reserved stable token issued by a US entity. 'I don't think there's any banks that have been really eager right? To jump in,' Wyoming Governor Mark Gordon said during the DC Blockchain Summit on Wednesday. 'Jamie Dimon was floating his idea a little while ago, and I remember talking to him and saying, you know, if you're gonna do something, you should really do it in Wyoming, because we have a framework to do it.'
