After a severe pullback on Bitcoin weakness, Coinbase (COIN) is showing big signs of life again.
For one, Bitcoin appears to have finally bottomed out, now up $4,774 to $73,092. Two, President Trump is siding with cryptocurrency firms “in their high-stakes battle with U.S. banks over whether they can offer interest-like returns on stablecoins,” says CNBC.
In fact, as noted by Trump on his X page, “The Genius Act is being threatened and undermined by the Banks, and that is unacceptable – We are not going to allow it. The U.S. needs to get Market Structure done, ASAP. Americans should earn more money on their money”
At issue is whether crypto exchanges such as Coinbase (COIN) should be allowed to offer rewards programs that pay an annual percentage yield to customers who hold stablecoins. Coinbase, for example, offers a healthy annual yield on certain coin, which are often above bank deposit rates, which are close to nothing. The fear is that if yield-like payments could encourage banking customers to shift money away from traditional bank accounts.
All of which could lending that supports the broader economy, added Seeking Alpha.
“Banking groups have flooded lawmakers with letters and calls, warning that high-yield crypto tokens could drain deposits and threaten lenders. Executives from JPMorgan Chase (JPM), Citigroup (C) have joined the push to regulate or limit crypto rewards to protect traditional banking, a WSJ report pointed out,” they added.
Should we see progress in the fight for interest-like returns, Coinbase could explode higher.
Sincerely,
Ian Cooper
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