On January 12, US cryptocurrency exchange Coinbase is increasing pressure on US lawmakers to resist proposals to ban certain decentralized finance (DeFi) provisions in the major cryptocurrency bill known as the CLARITY Act. Bloomberg, citing sources familiar with the matter, reported that Coinbase may reconsider its support for the bill if it restricts stablecoin issuers from offering rewards on platforms such as crypto exchage.
Banking groups are concerned that stablecoin rewards and yield products could siphon trillions of dollars away from the traditional banking system. The GENIUS Act, passed in July 2025, prohibits stablecoin issuers from providing interest or yield to holders, but does not explicitly prohibit third parties such as crypto exchage from offering rewards. The banking industry is currently attempting to close this loophole through the CLARITY Act. Stablecoins have become a major source of revenue for Coinbase, contributing nearly $247 million in the fourth quarter of 2024. The U.S. Senate Banking Committee is expected to discuss this issue at its meeting this Thursday. (Cointelegraph)
