Circle Internet Group and partner Coinbase are lobbying against proposed changes to a major U.S. crypto market-structure bill. The dispute centers on a contentious provision that restricts stablecoin reward offerings.
The provision mandates that only regulated banks can offer rewards on stablecoin holdings, such as Circle’s USDC. This change directly impacts a key revenue source for both firms, as Circle and Coinbase share interest income generated from the reserves backing USDC.
Coinbase has warned U.S. lawmakers it might withdraw support for the bill if the new restrictions are included. The crypto exchange generated approximately $1.3 billion in stablecoin-related revenue in 2025. This figure highlights the financial significance of the rewards program for USDC balances on its platform.
The ongoing dispute introduces uncertainty and potential delays for the comprehensive crypto legislation. Analysts note the window for passing such a bill is narrowing.