Coinbase Chief Policy Officer Faryar Shirzad warned against proposed U.S. stablecoin legislation. He cautioned that the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act grants a significant strategic advantage to global competitors.
The GENIUS Act currently prohibits issuers from paying interest on stablecoins. Shirzad argues this restriction causes dollar-linked stablecoins to lose appeal against rapidly advancing foreign alternatives.
Shirzad’s warning follows an announcement from the People’s Bank of China. The PBOC will permit interest payments on its digital yuan (e-CNY) starting January 1, 2026.
Shirzad stated that without the ability to offer rewards or yield, this policy decision could undermine Washington's competitiveness in the future of global digital payments.