Representative French Hill, the chairman of the House Financial Services Committee, has rejected a call to approve interest-bearing stablecoins. Coinbase CEO Brian Armstrong made a public call for this yesterday.

Hill is a vocal advocate for new stablecoin regulations, and the crypto industry sees his appointment to the Committee as a victory.

French Hill Rejects Interest-Bearing Stablecoins
If there’s one topic that’s a top priority for U.S. crypto policy, it’s stablecoin regulation. Significant momentum is building behind favorable regulation for the industry, with President Trump claiming that stablecoins will play a role in the dollar’s ​​dominance. However, Representative French Hill pushed back on one request, saying he opposes interest-bearing stablecoins:

“I understand the point of view, but I don’t think there’s a consensus across the party or the House [of Congress] on having a dollar-based stablecoin pay interest to the holder of that stablecoin,” Hill told reporters earlier today.

While Hill describes this view of stablecoins as a common-sense one, it’s a limitation on the political influence of the crypto industry. When Hill was selected to head the House Financial Services Committee, crypto saw it as a big win. Moreover, he has had a visible presence in the fight for stablecoin regulation. So, what’s the problem?

Basically, Coinbase CEO Brian Armstrong has made a call to Hill and other lawmakers on interest-bearing stablecoins. Just yesterday, Armstrong called the policy a “win-win” and a huge opportunity to help consumers and the economy.

“US stablecoin laws should allow consumers to earn interest on stablecoins. The government should not intervene to favor one industry over another. Both banks and crypto companies should be allowed and encouraged to share the benefits with consumers. This is consistent with a free market approach,” Armstrong stated.

Since Armstrong made this public call yesterday, it’s notable that Hill has so quickly rejected his vision for stablecoins. Armstrong’s political clout has clearly increased, as he played a prominent role at Trump’s Crypto Summit and the SEC dropped its case against Coinbase.

Here’s an important truth for the U.S. crypto industry to know: no matter how quickly its influence grows, it’s still very new to most people. Earlier this year, a series of state-level Bitcoin Reserve proposals failed in Republican-controlled states. President Trump may be pro-crypto, but his supporters are limited.