Coinbase Challenges Crypto Bill Ahead of Jan. 15 Deadline Over Stablecoin Rewards

As the Jan. 15 deadline for the CLARITY Act approaches, Coinbase is intensifying efforts to provide rewards on stablecoin holdings. CEO Brian Armstrong has expressed concerns about potential restrictions in the proposed crypto bill by US lawmakers.

Concerns Over Crypto Bill Restrictions

Coinbase might reconsider support for the Crypto bill if it imposes limitations on stablecoin rewards beyond disclosure requirements.
US lawmakers are contemplating restricting stablecoin rewards to regulated financial institutions.
The American Bankers Association warned that such restrictions could divert deposits from traditional banks and harm small communities.
Crypto-native firms argue that limiting rewards to chartered institutions would hinder competition.
Coinbase has filed for a national trust charter to potentially offer rewards under regulatory norms.

Importance of Stablecoins for Coinbase

Stablecoin rewards are a significant revenue source for Coinbase, sharing interest income from reserves backing Circle's USDC.
Rewards of approximately 3.5% are offered on USDC balances to encourage adoption.
If the bill restricts these incentives, it could impact Coinbase's revenue, which reached $1.3 billion in 2025.
The outcome depends on the final wording of the bill, with discussions ongoing between lawmakers and the crypto industry.