Coinbase Warns U.S. Stablecoin Restrictions Could Empower China’s Digital Yuan

In a critical policy alert, Coinbase's Chief Policy Officer Faryar Shirzad has cautioned U.S. lawmakers that imposing restrictions on interest payments for dollar-pegged stablecoins may inadvertently strengthen China's position in the global digital currency competition. This warning emerges as China advances plans to introduce interest-bearing features for its central bank digital currency (CBDC), the digital yuan, by 2026. Shirzad characterizes this development as providing China with "a massive competitive edge" for its state-backed digital currency alternative. The concern underscores a pivotal moment in monetary policy and technological innovation, where regulatory decisions in the United States could influence the international adoption and appeal of digital currencies. As of December 31, 2025, the race for dominance in the digital finance sector intensifies, with implications for global economic influence and financial sovereignty. The discussion highlights the strategic importance of fostering innovation within a clear regulatory framework to maintain the competitiveness of U.S.-aligned digital assets in an increasingly contested landscape.

U.S. Stablecoin Policy Risks Ceding Ground to China's Digital Yuan Push

Coinbase's Chief Policy Officer Faryar Shirzad issued a stark warning to U.S. lawmakers: restricting interest payments on dollar-pegged stablecoins could hand China a strategic advantage in the global digital currency race. The caution comes as China prepares to implement interest-bearing features for its digital yuan by 2026, creating what Shirzad describes as "a massive competitive edge" for state-backed alternatives.

The policy debate centers on the GENIUS Act, a Trump-era initiative designed to maintain U.S. stablecoins as the dominant settlement layer. Shirzad emphasized that tokenization represents the future of finance, urging legislators to carefully consider how reward mechanisms impact dollar hegemony. Commercial banks in China will begin offering e-CNY interest payments within two years, accelerating adoption of the centrally controlled digital currency.

Coinbase Ventures Leads Crypto VC Activity in 2025 with $171 Billion Invested in Blockchain Startups

Cryptocurrency venture capital surged in 2025 as investors committed $171 billion to blockchain startups, signaling robust confidence in the sector's future. Coinbase Ventures emerged as the most active participant, closing 87 deals—nearly double the volume of its nearest competitors.

Animoca Brands secured second place with 52 investments, followed by YZi Labs (40 deals) and a tie between GSR and Amber Group at 39 deals each. Panthera Capital, Selini Capital, Mirana Ventures, and Big Brain Holdings demonstrated strong activity with 33-37 deals apiece.

The capital infusion primarily targeted DeFi protocols, GameFi platforms, NFT marketplaces, and blockchain infrastructure projects—sectors poised to redefine financial services and digital ownership. This record-breaking investment year suggests institutional players are betting heavily on Web3's disruptive potential.