According to BlockBeats news on August 5, Coinbase CEO Brian Armstrong stated during last Thursday's earnings call that the company will continue to offer USDC holding rewards to users, claiming that the program is an important differentiating advantage for attracting users.
Although the (GENIUS Act) prohibits stablecoin issuers from paying interest or returns, Armstrong clarified, 'We are not the issuer, and what we are paying is not interest, but rewards.' Coinbase currently offers an annual yield of 4.1% on USDC deposits to U.S. users.
The act only targets issuers, such as Circle, the issuer of USDC, and does not prohibit trading platforms from providing rewards. A Senate staffer explained that the act aims to prevent stablecoins from being viewed as traditional deposit instruments.
In addition, PayPal is also advancing a similar strategy, offering a 3.7% annual yield to users holding its stablecoin PYUSD to attract more customers.
