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Coinbase has warned US lawmakers it may withdraw support for the CLARITY Act if senators move to restrict stablecoin rewards, threatening to undermine one of Washington’s most significant efforts to regulate digital assets.
The conditional opposition, disclosed January 11, comes as the Senate prepares to mark up the sweeping market structure bill that could determine how crypto platforms operate in the United States for years to come.
Coinbase has privately told U.S. lawmakers that it may oppose the Us crypto bill if provisions go beyond basic disclosure requirements and limit stablecoin rewards, according to people familiar with the company’s position.
For the exchange, the issue is not marginal. Rewards linked to stablecoins, particularly USD Coin (USDC), are deeply embedded in its business model and competitive strategy.
The company shares interest income generated from the reserves backing Circle’s USDC and redistributes part of that income to users as incentives. Some Coinbase customers, including subscribers to its premium Coinbase One service, receive rewards of roughly 3.5% on certain stablecoin balances.
These incentives encourage users to hold USDC on the platform rather than move funds elsewhere, providing Coinbase with a steadier revenue stream during periods of weaker trading activity.
Bloomberg estimates that Coinbase’s stablecoin-related revenue may have reached about $1.3 billion in 2025, underlining why the exchange is drawing a hard line in discussions over the Us crypto bill. Coinbase also holds a minority stake in Circle, further increasing its exposure to any policy shift that could reshape the stablecoin economy.
As one point of contention, some draft proposals circulating in Washington would restrict stablecoin rewards to regulated banks or traditional financial institutions.
Supporters of that approach argue that yield-bearing stablecoin accounts could drain deposits from banks, reducing their ability to lend to households and small businesses.
Coinbase executives counter that such limits would “tilt the field in favor of banks,” — Coinbase executives, according to the report, a framing that reflects broader industry concerns about uneven competition under the Us crypto bill.
The dispute over rewards cannot be separated from the regulatory groundwork already laid by Congress. In July, lawmakers passed the GENIUS Act, establishing the first federal framework for stablecoin issuers.
That law prohibits issuers themselves from paying interest or yield solely for holding stablecoins, but it deliberately stops short of banning third-party platforms from offering rewards.
Crypto firms argue that this distinction was intentional and hard-won. Coinbase has told policymakers that extending restrictions to platforms would effectively reopen compromises already settled under the GENIUS Act.
In its view, rewriting those terms through the Us crypto bill would create regulatory uncertainty and discourage innovation.
Company officials have also framed platform-based rewards as a strategic tool for reinforcing the U.S. dollar’s role in global digital finance. As other countries experiment with interest-bearing digital currencies, Coinbase argues that allowing dollar-backed stablecoins to remain competitive supports broader U.S. financial influence.
“The distinction was deliberate,” — people familiar with the company’s thinking, highlighting how central this argument has become in debates surrounding the Us crypto bill.
The timing of Coinbase’s warning adds to the political sensitivity of the moment. The crypto industry ranked among the largest corporate political spenders during the 2023–2024 election cycle, and Coinbase has been one of the sector’s most visible donors. Its potential withdrawal of support could complicate efforts by lawmakers to maintain bipartisan momentum behind the Us crypto bill.
Some senators are now exploring compromise options. One proposal under discussion would allow stablecoin rewards only for firms that hold bank or trust charters. Several crypto companies have already secured conditional approvals for national trust bank status, though those approvals face resistance from established banking groups wary of increased competition.
Despite these talks, analysts caution that the stablecoin rewards dispute could still delay or derail the legislation. If divisions deepen and industry backing erodes, the chances of passing the Us crypto bill this year could fall sharply.
For now, stablecoin rewards have become more than a technical detail. They represent a broader struggle over who benefits from the next phase of U.S. crypto regulation and how power will be balanced between traditional finance and digital-native firms.
As Congress moves closer to finalizing the Us crypto bill, Coinbase’s stance underscores how fragile consensus remains—and how a single provision could reshape the future of crypto market structure in the United States.
