Coinbase has told U.S. lawmakers it could withdraw support for the proposed CLARITY Act if the bill limits stablecoin rewards.
The exchange earns revenue by sharing interest generated from reserves backing USDC and offering rewards to users. Stablecoin-related income is estimated to have reached $1.3 billion in 2025.
Some policymakers want stablecoin rewards restricted to banks, arguing they could drain deposits from the traditional system. Coinbase disagrees, saying platform-based rewards were intentionally allowed under earlier laws.
As Congress debates broader crypto regulation, the issue has become politically sensitive. Analysts warn that disagreements over stablecoin rewards could slow or even derail the legislation.
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