Coinbase confirmed a legislative breakthrough regarding a key provision for stablecoin rewards in the U.S. This agreement potentially clears the path for a landmark crypto bill to advance in the Senate.
The legislation previously stalled due to opposition from the banking sector. Banks expressed concerns that stablecoin rewards would draw deposits away from traditional financial institutions.
The compromise restricts rewards that function like bank deposit interest. However, it preserves the ability for crypto firms to offer rewards based on platform and network usage.
Coinbase Chief Policy Officer Faryar Shirzad noted that the core ability for Americans to earn rewards was protected despite increased restrictions. This deal may now allow the broader market structure bill to provide regulatory clarity for the digital asset industry.