Coinbase CEO Responds to Stablecoin Rewards and Banking Regulation Controversy Coinbase CEO Brian Armstrong @brian_armstrong, in a September 19 interview with MoneyRehabPodcast, was asked about the difference between rewards for USDC holders and bank interest, as well as whether Coinbase should comply with banking capital and liquidity requirements. Armstrong explained that the rewards come from sharing a portion of the yield generated by underlying short-term U.S. Treasury bonds with users. Coinbase uses the term 'rewards' to legally distinguish it from deposit interest. He emphasized that Coinbase is not a stablecoin issuer and does not engage in fractional reserve lending, while stablecoin issuers operate on a full-reserve basis. He also criticized some major banks for attempting to use the government to stifle competition. Source: MoneyRehabPodcast