Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong reportedly faced harsh criticism from Wall Street’s biggest bank chiefs at the World Economic Forum in Davos.The Davos ShowdownJPMorgan Chase (NYSE:JPM) CEO Jamie Dimon interrupted Armstrong’s coffee meeting with former U.K. Prime Minister Tony Blair to confront him directly according to a Wall Street Journal feature published on Friday.“You are full of s—,” Dimon said with his index finger pointed at Armstrong’s face, telling him to stop lying on telev ...

Core Viewpoint - The U.S. risks losing its competitive advantage in the stablecoin market if it mishandles the debate over allowing rewards on dollar-pegged stablecoins, as highlighted by Coinbase's policy chief Faryar Shirzad [1][2]. Group 1: Legislative Context - The U.S. enacted the GENIUS ACT in July, which provides guidelines for stablecoin issuance and prohibits issuers from sharing profits with holders through interest payments [4]. - Banking groups are urging lawmakers to close loopholes in the GENIUS Act, citing concerns over deposit flight risks to community banks that could impact their lending capabilities [5]. Group 2: Competitive Landscape - The People's Bank of China announced it would start paying interest on digital yuan holdings, effective January 1, as part of its strategy to promote the adoption of its Central Bank Digital Currency (CBDC) [3]. - There are concerns that if the U.S. does not adapt its regulations, non-U.S. stablecoins and CBDCs could gain a significant competitive edge, particularly in light of China's interest rate on demand deposits being at 0.05% [2][3]. Group 3: Industry Reactions - The Blockchain Association argues that claims regarding stablecoin rewards harming community banks lack evidence and warns that changes to the GENIUS Act could undermine the regulatory certainty typically associated with Congressional actions [6]. - As negotiations for the Senate's market structure legislation progress, there is optimism from White House officials that the legislation will advance, despite previous delays [7].