On August 5, according to Decrypt, Coinbase CEO Brian Armstrong stated during last Thursday's earnings call that the company will continue to provide USDC holding rewards to users, describing the plan as an important differentiated advantage for attracting users.
Despite the GENIUS Act prohibiting stablecoin issuers from paying interest or returns, Armstrong clarified: "We are not the issuer, and what we are paying is not interest, but rewards". Coinbase currently offers a 4.1% annual yield on USDC deposits for US users.
The act only targets 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 viewed as traditional deposit instruments.
Additionally, PayPal is advancing a similar strategy, offering a 3.7% annual yield to users holding its stablecoin PYUSD to attract more customers.
