Coinbase Exec Warns US Stablecoin Restrictions Could Fuel China’s Digital Yuan Dominance

In a striking warning to U.S. policymakers, Coinbase Chief Policy Officer Faryar Shirzad has cautioned that efforts by American banks to ban interest payments on stablecoins risk handing a significant strategic advantage to global competitors, particularly China, at a critical juncture in the evolution of digital finance. This alert comes against the backdrop of China's accelerating advancements with its central bank digital currency (CBDC), the Digital Yuan (e-CNY), which is being positioned as a tool for international trade settlement and financial influence. The executives' concern centers on a proposed prohibition that could stifle innovation in the U.S. dollar-denominated stablecoin ecosystem—a sector seen as vital for maintaining the greenback's dominance in global settlements. Shirzad specifically highlighted to Congress how such a ban would directly undermine the legislative intent and progress embodied in the recently proposed GENIUS Act. This act aims to formally establish U.S. dollar stablecoins as credible, regulated instruments for future financial settlement, providing a clear American framework to counter foreign CBDC initiatives. The push from traditional banking institutions reflects a deepening tension between incumbent financial players and the emerging crypto-native sector over the future of money and payments. By potentially outlawing yield-generating mechanisms for stablecoins, U.S. regulators risk crippling a key value proposition and adoption driver for these digital assets, making them less attractive compared to state-backed alternatives like the Digital Yuan. China's methodical, state-led rollout of its CBDC presents a contrasting model—one of centralized control but also seamless integration with existing financial and surveillance systems. Industry leaders argue that instead of restrictive bans, the U.S. should foster a competitive, innovation-friendly environment for private-sector dollar stablecoins, ensuring they remain the preferred medium for global digital commerce. The warning underscores a pivotal moment: the U.S. must choose between embracing the potential of its private crypto industry to lead the next wave of financial infrastructure or enacting prohibitions that could inadvertently cement the Digital Yuan's role in the new global digital economy, reshaping financial power dynamics for decades to come.

US Banks’ Push To Ban Stablecoin Rewards Could Hand Global Advantage To China, Execs Warn

China's latest MOVE with its Digital Yuan has sparked warnings from crypto industry executives that US banks' push to prohibit interest payments on stablecoins may cede ground to global rivals. Coinbase CPO Faryar Shirzad cautioned Congress that such a ban could undermine legislative progress made with the GENIUS Act, which positions US dollar stablecoins as future settlement instruments.

The People's Bank of China's announcement of interest payments on its Digital Yuan presents a strategic challenge. Deputy Governor Lu Lei's new framework grants the e-CNY equal legal status with bank deposits, potentially reshaping global currency dynamics as commercial banks begin managing Digital Yuan holdings.

Coinbase Predicts Accelerated Crypto Adoption in 2026 Driven by ETFs, Stablecoins, and Tokenization

Coinbase's head of investment research, David Duong, forecasts a significant acceleration in cryptocurrency adoption by 2026. The convergence of exchange-traded funds (ETFs), stablecoins, and asset tokenization—coupled with clearer regulatory frameworks—is expected to create a self-reinforcing cycle of growth.

Global crypto markets have reached a stage of maturity, with adoption rates stabilizing rather than stalling. Regulatory progress in the U.S. and Europe is enabling deeper institutional participation and real-world integration of digital assets.

2025 marked a pivotal year for the sector, with spot ETF approvals broadening investor access, corporate crypto treasuries gaining traction, and stablecoins becoming embedded in traditional financial workflows. These trends are poised to compound in 2026 as ETF approval processes streamline and tokenized collateral gains wider recognition.