Jan 13, 2026
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Coinbase Reconsiders Backing Crypto Bill Due to Stablecoin Provision Concerns
As the January 15 markup of the crypto market structure bill, known as the CLARITY Act, approaches, Coinbase is reconsidering its support for the legislation.
- The CLARITY Act is set to be marked up in a Senate committee. Coinbase may withdraw support if the bill includes restrictive provisions on stablecoin rewards.
- The bill could limit rewards to regulated financial institutions, aligning with banking sector concerns about losing deposits to crypto platforms.
- Coinbase's business model relies on rewards programs, such as offering 3.5% on USDC holdings, which could be jeopardized by the bill.
- Should bans on incentives pass, this could impact an anticipated $1.3 billion revenue stream by 2025.
- The GENIUS Act already prohibits stablecoin issuers from offering interest but allows exchanges like Coinbase to provide rewards.
- The American Bankers Association argues that rewards on stablecoins could negatively affect bank deposits and community lending.
- A compromise might allow only licensed banks or financial institutions to offer rewards on stablecoin balances.
Recently, five crypto firms, including Ripple and Circle, received conditional approvals to become national trust banks, facing opposition from the banking lobby.
