Coinbase may withdraw CLARITY Act support if it bans stablecoin rewards
#BinanceHODLerBREV A fight over stablecoin rewards is threatening to fracture Coinbase’s support for Washington’s next major crypto bill.
Summary
Coinbase may oppose a key crypto bill if stablecoin rewards are restricted.
Rewards tied to USDC are a major revenue source for the exchange.
The dispute risks delaying market structure legislation in Congress.
Coinbase is drawing a clear line as Congress moves closer to finalizing its next major crypto bill dubbed the CLARITY Act.
The warning surfaced on Jan. 11 in a report by Bloomberg, as lawmakers prepare to mark up a sweeping digital-asset market structure bill in the Senate later this week.
Stablecoin rewards become a fault line
Coinbase has told U.S. lawmakers it may withdraw support for the CLARITY Act if it restricts stablecoin rewards beyond basic disclosure rules. The exchange views the issue as central to its business and to competition in the stablecoin market, according to people familiar with the company’s thinking.
At stake is Coinbase’s ability to offer rewards on stablecoin balances, particularly USD Coin USDC
-0.07%
USDC. The exchange shares interest income generated from reserves backing Circle’s USDC and uses part of that income to offer incentives to users, including roughly 3.5% rewards for some Coinbase One customers.
Those incentives encourage users to keep stablecoins on the platform and provide a steady revenue stream, especially during weaker trading cycles. Bloomberg estimates Coinbase’s stablecoin-related revenue may have reached about $1.3 billion in 2025.
If rewards are curtailed, fewer users may hold USDC on the exchange, putting that income at risk. Coinbase also owns a minority stake in Circle, deepening its exposure to the stablecoin economy.