The outcome of this week’s discussions could shape how crypto rewards are treated going forward
Coinbase is stepping up its lobbying efforts as US lawmakers prepare to review key sections of the CLARITY Act, a major crypto market structure bill. The debate centers on whether stablecoin issuers should be blocked from offering rewards through crypto exchanges and similar platforms.
According to a recent report, Coinbase has warned that it could withdraw support for the legislation if new language limits those reward programs. The company views stablecoin incentives as a core part of its business and a feature valued by many users. Coinbase has not publicly commented on the report.
The issue is set to be discussed during a Senate Banking Committee markup session scheduled for Thursday. Lawmakers are expected to weigh concerns raised by both the crypto sector and traditional financial institutions during the session.
Banking groups have pushed hard against stablecoin rewards, arguing that yield-bearing digital assets could pull large amounts of money out of the banking system. Some industry-backed groups have even launched television ads urging voters to pressure senators to support restrictions on decentralized finance features.
Crypto advocates have responded with their own campaign. Stand With Crypto says supporters have sent more than 135,000 messages to senators, asking them to protect stablecoin rewards and prevent limits that could slow innovation.
The debate follows the passage of the GENIUS Act last year, which banned stablecoin issuers from directly paying interest to holders. However, the law did not clearly restrict exchanges or third parties from offering rewards, leaving room for alternative structures. The CLARITY Act could close that gap.
Stablecoins are a major source of revenue for Coinbase, generating hundreds of millions of dollars through transaction and reward-related income. A ban on rewards tied to popular tokens like USDC could significantly impact crypto platforms.
