Overview
- Coinbase has signaled it may withdraw backing for the CLARITY Act if it includes restrictions on platform-based stablecoin rewards beyond enhanced disclosure, with a Senate Banking Committee markup slated for Jan. 15.
- Draft proposals would limit reward programs to banks or trust-chartered firms, a change supported by banking trade groups that warn yield-bearing stablecoins could siphon deposits and weaken community lending.
- Rewards linked to USDC are significant for Coinbase, which offers roughly 3.5% to some customers and was projected by Bloomberg to generate about $1.3 billion in 2025 stablecoin-related revenue.
- The 2025 GENIUS Act barred issuers from paying interest but allowed third parties to offer rewards, and crypto firms say new limits would reverse that compromise.
- Analysts report bipartisan support is fraying and passage could slip, as Coinbase also pursues a national trust charter that could provide an alternate path for offering rewards.