Coinbase vs. Big Banks: The Stablecoin Yield Showdown
Coinbase CEO Brian Armstrong is clamping down on big banks for trying to ban stablecoin yields, claiming they're undermining President Trump's crypto agenda. The fight revolves around the CLARITY Act, which could strip Americans of 4-5% yields on stablecoins, impacting Coinbase's $1.35 billion revenue stream.
The Issue at Hand
- Banks want to ban stablecoin yields, citing potential deposit migration to crypto.
- Coinbase argues this move would benefit big banks at the expense of average Americans.
- The GENIUS Act allows stablecoin issuers to pass on Treasury returns to customers.
Trump's Stance
- President Trump supports crypto firms, urging Congress to pass the market-structure bill ASAP.
- Trump accuses banks of threatening the GENIUS Act over stablecoin yield.
The Numbers
- Coinbase generated $1.35 billion in stablecoin revenue in 2025 (19% of total revenue).
- Total stablecoin volume reached $33 trillion last year, with USDC accounting for $18.3 trillion.
What's Next?
The outcome will determine whether stablecoins remain a high-yield alternative to bank deposits or become low-yield digital cash.
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