Coinbase and PayPal insist on issuing stablecoin rewards in response to regulatory controversies surrounding the GENIUS Act

BlockBeats news, on August 5th, according to Decrypt, Coinbase CEO Brian Armstrong stated during last Thursday's earnings conference call that the company will continue to offer USDC holding rewards to users, and called the program an important differentiation advantage to attract users. Although the GENIUS Act prohibits stablecoin issuers from paying interest or income, Armstrong clarified that "we are not issuers, nor are we paying interest, but rewards. Coinbase currently offers an annualized yield of 4.1% on USDC deposits to US users. This bill only applies to issuers, such as Circle, the issuer of USDC, and does not prohibit trading platforms from providing rewards. A Senate staff member explained that the bill aims to prevent stablecoins from being seen as traditional deposit tools. In addition, PayPal is also promoting a similar strategy by offering a 3.7% annualized return to users holding its stablecoin PYUSD to attract more customers.