Stablecoin Reward Rules Could Sway Coinbase on Senate Bill

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Coinbase is reconsidering its endorsement of an upcoming US cryptocurrency market structure bill, a Bloomberg report reveals. The potential shift hinges on whether the final legislation goes beyond disclosure requirements to restrict platforms from offering rewards to stablecoin holders.

With lawmakers set to unveil the bill imminently and committee markups scheduled for later this week, Coinbase has intensified its lobbying efforts. The company maintains that any broad limitations on rewards would be untenable, given their significance to its business model and user offerings.

The legal landscape was partially set by the GENIUS Act, signed in July 2025, which bans primary issuers like Circle from distributing interest directly. This left an opening for trading platforms to create their own reward programs for customers holding stablecoins on their services.

A key point of contention is a proposal within the market structure bill that would limit reward programs to traditional, regulated financial institutions. Coinbase, despite seeking a national trust charter, is advocating for rules that allow crypto platforms to continue providing rewards, arguing this is vital for a competitive digital asset ecosystem.