Coinbase Pushes for Stablecoin Rewards Ahead of Jan. 15 Crypto Bill Deadline

Just ahead of the Jan. 15 deadline for the much-awaited crypto bill of the CLARITY Act, crypto exchange Coinbase is stepping up efforts to provide rewards on stablecoin holdings. CEO Brian Armstrong has previously shared concerns over the proposed restrictions in the Crypto bill by the US lawmakers. The exchange stated that this feature is very critical to its own business model.

Coinbase Raises Concerns over Crypto Bill Restrictions

As reported by the Bloomberg publication, Coinbase remains concerned that restrictions that are currently under discussion would be part of the crypto market-structure bill.

The company has noted that it might reconsider its support for the Crypto bill if the legislation goes beyond the disclosure requirements and brings more limitations on stablecoin rewards.

Some US lawmakers are considering a proposal to restrict the stablecoin rewards to regulated financial institutions. Moreover, some banks and financial players argued that such a reward mechanism could possibly draw deposits away from traditional lenders. In a recent letter, the American Bankers Association wrote:

However, crypto-native firms are pushing back, warning that limiting rewards to chartered institutions would undermine competition.

Coinbase has filed for a national trust charter, which could allow it to provide rewards under regulatory norms. Other market players like Trump’s World Liberty Financial have also made similar moves.

The Importance of Stablecoins for Coinbase

Stablecoin rewards represent a meaningful revenue stream for Coinbase. The exchange shares interest income with Circle Internet Group from reserves backing Circle’s USDC USDC $1.00 24h volatility: 0.1% Market cap: $74.57 B Vol. 24h: $8.37 B stablecoin. Besides, USDC balances held on Coinbase generate steady income.

To encourage adoption, Coinbase offers rewards of around 3.5% on USDC balances for certain customers. According to Bloomberg estimates, Coinbase’s stablecoin-related revenue surged to $1.3 billion in 2025. If the forthcoming bill restricts or bans such incentives, fewer users may hold stablecoins on the platform, which can impact the exchange’s revenue.

The final impact will depend on the exact wording of the bill. However, people familiar with the discussions say lawmakers are likely to include specific rules on stablecoin rewards. It has been the key issue of discussion between regulators and the crypto industry.

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