French Hill, Chairman of the U.S. House Financial Services Subcommittee, has spoken out against Coinbase CEO Brian Armstrong’s proposal to legalize interest-bearing stablecoins. According to Hill, such assets should not be considered investment products.
💬 “There is clear legislative consensus in the U.S. Congress: stablecoins are tools to enhance payment efficiency, not substitutes for bank deposits,” Hill emphasized.
This means that “passive income in USDC” remains uncertain under U.S. jurisdiction, despite growing interest from users and DeFi platforms.
Armstrong, in contrast, argues that interest-bearing stablecoins could serve as a transparent and secure alternative to traditional bank deposits, especially in countries with unstable currencies. But for now, Congress maintains a more conservative stance.
Amid tightening global crypto regulation, the U.S. continues to emphasize payment utility over the investment potential of Web3.
