Coinbase policy chief warns U.S. stablecoin interest curbs could aid China's digital yuan push in 2026

Coinbase Chief Policy Officer Faryar Shirzad cautioned U.S. lawmakers that restricting interest rewards on U.S.-issued stablecoins could hand China and other rivals a strategic edge. He linked his warning to China's plan for commercial banks to pay interest on e-CNY from January 1, 2026, and to the rapid growth in digital yuan transactions. Shirzad argued that tokenization and competitive incentives are critical if the U.S. dollar and U.S. financial system are to maintain their global primacy.