PANews reported on January 16th that, according to Bloomberg, Coinbase CEO Brian Armstrong met with lawmakers on Capitol Hill to lobby for potential restrictions on stablecoin rewards. Armstrong stated that banking lobbying groups are attempting to pass legislation limiting stablecoin rewards, which would hinder the crypto industry's ability to compete with banks for funding. He believes Americans should have the right to earn higher returns on their funds, and banks are worried that this would force them to raise deposit rates for their customers.

Armstrong previously opposed a draft bill on digital asset market structure that a Senate committee planned to consider, after which committee chairman Tim Scott announced a delay in action on the bill. The draft bill's compromise provisions originally prohibited paying deposit rewards but allowed other forms, such as trading rewards. However, senators are expected to vote on an amendment that would completely ban stablecoin rewards, and the outcome remains unclear.