Overview
- Lawmakers plan to mark up the market-structure bill this week, with drafts under discussion that could restrict platform-based stablecoin rewards or confine them to regulated financial institutions.
- Coinbase’s stance follows Bloomberg’s report that it may drop support if the bill goes beyond enhanced disclosures, reflecting the exchange’s reliance on USDC-related rewards that include roughly 3.5% for some customers.
- Bloomberg data projects Coinbase’s stablecoin revenue reached about $1.3 billion in 2025, and curbs on rewards could reduce user balances held on the platform and pressure that income stream.
- The GENIUS Act bars issuers from paying interest but does not prohibit third-party platform rewards, a distinction banking groups want narrowed due to concerns about deposit flight and community lending.
- As banks press to channel rewards through chartered institutions, Coinbase has applied for a national trust charter and several crypto firms recently received conditional OCC approvals, offering a potential workaround if restrictions pass.