Banks Lobby Against Crypto Rewards to Safeguard $1,400 Household Tax

Financial institutions are actively campaigning against stablecoin incentives, aiming to shield an overlooked revenue stream estimated at $360 billion. On January 8, Faryar Shirzad, the chief policy officer at Coinbase, expressed concerns via a social media thread about the ongoing discussions surrounding stablecoin rewards as Congress reviews market structure legislation.

In his remarks, Shirzad highlighted figures that banking organizations would prefer to keep under wraps. According to his findings, US banks generate a staggering $176 billion in profits each year, which is significantly affected by the introduction of competitive rewards associated with stablecoins.

This lucrative banking revenue has implications that reach every household, translating to an average hidden tax of $1,400 per year. The stakes are high, as the banks’ resistance to crypto rewards is not just about maintaining profit margins but also about influencing the regulatory landscape that could shape the future of digital currencies.