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CEX and PayPal insist on the distribution of stablecoin rewards in response to the regulatory controversy over the GENIUS Act.
On August 5th, Decrypt reported that CEX CEO Brian Armstrong stated during last Thursday's earnings call that the company will continue to distribute USDC holding rewards to users, calling the program an important differentiating advantage to attract users. Despite the GENIUS Act prohibiting stablecoin issuers from paying interest or yields, Armstrong clarified: "We are not the issuer, and what we are paying is not interest, but rewards." Currently, CEX offers an Annual Percentage Rate of 4.1% for USDC deposits to U.S. users. The Act only targets issuers, such as Circle, the issuer of USDC, and does not prohibit trading platforms from providing rewards. A Senate staffer explained that the purpose of the Act is to prevent stablecoins from being viewed as traditional deposit instruments. Additionally, PayPal is also advancing a similar strategy, offering a 3.7% Annual Percentage Rate for users holding its stablecoin PYUSD to attract more customers.