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Interest payments, stablecoins and the SEC

The SEC's definition of a covered stablecoin does not allow for interest payments by the issuer to the user. "While earnings on these assets, such as interest, may be used by a Covered Stablecoin issuer at its discretion, no such earnings are paid to Covered Stablecoin holders," the statement says.

That's a topic Coinbase CEO Brian Armstrong is hoping Congress will change. He spoke on CNBC earlier this week, saying he's "concerned about this idea that consumers cannot get interest on stablecoins" – doing so would make the issuer subject to securities law, he explained in a lengthy X post – and that he'd "like to see legislation that allows that."