Coinbase May Withdraw Support for Crypto Bill Over Stablecoin Rewards
Coinbase has ramped up lobbying in Washington and signaled it may drop support for the much‑anticipated market-structure bill set to be unveiled on January 12, after lawmakers proposed curbs on stablecoin reward programs. The standoff highlights growing friction between traditional banking interests, which favor tighter controls, and crypto firms that view yield-bearing stablecoin products as core consumer offerings. If Coinbase follows through, it could complicate a fragile bipartisan compromise and force Congress to choose between stricter oversight and industry demands for product flexibility. The dispute matters for retail users who rely on stablecoin yields and for market structure more broadly, since the bill's outcome will shape regulatory precedents and the competitive landscape between banks and crypto platforms.