Coinbase Executives Are Defending Stablecoins As “Private Money”

[lingriiddd]

Top Coinbase executives are publicly pushing back against growing criticism that privately issued stablecoins could become a systemic risk to the US economy.

Coinbase Chief Legal Officer Paul Grewal argued that the debate should focus on regulation and oversight rather than whether money is issued publicly or privately. He compared stablecoins to privately operated industries like healthcare and transportation, saying the real issue is how risk is managed.

At the same time, Coinbase Chief Policy Officer Faryar Shirzad pointed out that nearly 90% of the US M2 money supply already consists of privately issued financial instruments like commercial bank deposits and money market funds.

The comments come as lawmakers continue debating the CLARITY Act and broader stablecoin legislation that could define how digital dollars operate inside the US financial system.

[tradelikepro]

the comparison to privately issued money is important

[tradelikepro]

since large portions of modern monetary systems already rely on commercial bank liabilities and money market structures rather than direct central bank issuance

[Patapim]

Stablecoins are becoming too big for regulators to ignore.

[BrutalAge*gofast]

Private money already exists everywhere, stablecoins just make it digital.

[CoffeeZombie]

Regulation matters more than who issues the money.

[Suzukispeedtest]

USDC becoming part of the bigger monetary debate

[Pitchfork_IS_power]

Stablecoins aren't going away anytime soon.

[Capybara_Capybara]

The 90% M2 argument is actually pretty interesting.

[Saturnito]

Digital dollars need clear rules, not endless uncertainty.

[bred]

Stablecoins could become core financial infrastructure.

[Revenant]

Risk management should be the real discussion here.

[0c4535c1a0]

Crypto regulation is getting serious now.

[febe3f2e35]

Stablecoins might be the bridge between banks and crypto.

[059d96d16a]

Funny how “private money” suddenly sounds scary when it's onchain.

[GummyBear]

Clear regulation could unlock another wave of adoption.

[ChewBeast]

USDC keeps finding itself at the center of these debates.

[9777089235]

Stablecoins are slowly becoming impossible to separate from traditional finance.

[d82ae58262]

This debate will only get bigger as adoption grows.