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