Coinbase Threatens to Drop Support for Crypto Bill Over Stablecoin Rewards
Coinbase Global Inc. has warned lawmakers it could pull support for a major digital asset bill if new restrictions undermine its ability to pay interest to customers who hold stablecoins on its platform. The company framed stablecoin yields as a core customer product and revenue stream, and said curbs on those payments would force it to reassess its stance on legislation meant to provide regulatory clarity.
The ultimatum raises the stakes in congressional negotiations, where lawmakers are trying to balance investor protection with industry growth. If Coinbase follows through, it could weaken industry consensus and slow passage of a bill many view as a crucial step toward clear rules; consumers might also see reduced options for earning yield on stablecoin holdings. The episode underscores mounting friction between exchanges and regulators over how to treat interest-bearing crypto products as policy is drafted.