CEX CEO is actively lobbying legislators to ensure continued rewards for stablecoin holders.

On January 16, according to Bloomberg, CEX CEO Brian Armstrong met with lawmakers on Capitol Hill to ensure that his company can continue to pay rewards to users holding stablecoins on the platform. Armstrong stated that banking lobbying groups are attempting to restrict stablecoin rewards through legislation, which would hinder the cryptocurrency industry’s ability to compete for funding with banks. He believes that Americans should have the right to earn higher returns on their funds, while banks are concerned that they may be forced to raise deposit interest rates for customers. Previously, Armstrong opposed a draft digital asset market structure bill scheduled for review by the Senate committee, after which Chairman Tim Scott announced a delay in action on the bill. The compromise provisions in the draft initially banned paying deposit yields but allowed other forms such as trading rewards. However, senators are expected to vote on an amendment that would fully ban stablecoin rewards, with the outcome still uncertain.