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Senate Crypto Bill Hits Delay as Draft Limits Stablecoin Yield to Usage-Based Rewards

Coinbase’s threat to drop support underscores how the rewards fight could derail bipartisan momentum.

Overview

  • Senate Agriculture Chair John Boozman postponed his committee’s markup to late January, citing the need to shore up bipartisan support.
  • The Senate Banking Committee’s draft would permit activity- or usage-based incentives but prohibit paying yield solely for holding payment stablecoins.
  • Coinbase has signaled it may withdraw backing for the CLARITY Act if restrictions go beyond enhanced disclosures for platform-based rewards.
  • Banking trade groups urge lawmakers to confine rewards to regulated institutions, warning that yield-bearing stablecoin accounts could drain deposits from community banks.
  • Stablecoin incentives are a key revenue stream for CoinbaseBloomberg estimates about $1.3 billion in 2025—and the exchange has applied for a national trust charter as negotiations continue.