Coinbase is escalating pressure on U.S. lawmakers ahead of a key Senate vote, warning it could withdraw backing for the CLARITY Act if the bill curtails its stablecoin rewards business.
The legislation is scheduled for a Senate committee markup on Thursday, January 15, 2026.
The dispute centers on provisions under discussion that could restrict or ban third-party platforms from offering rewards tied to stablecoin reserves. For Coinbase, the issue cuts directly into a major revenue stream.
A Core Revenue Line at Risk
Coinbase views its stablecoin rewards program as foundational to its business model. The program generated approximately $1.3 billion in revenue in 2025, largely by sharing interest income from reserves backing Circle’s USDC. Coinbase currently offers 3.5% rewards on balances held through its Coinbase One product.
Executives have signaled that restrictions going beyond disclosure requirements would be unacceptable. Internally, the rewards offering is seen not as a promotional add-on, but as a structural component of customer engagement and profitability.
Banking Lobby Pushes Back
Opposition to stablecoin rewards has been led by the American Bankers Association, which argues that such programs siphon deposits away from traditional banks. The group has warned lawmakers that deposit outflows could weaken community lending, with downstream effects on small businesses and homebuyers.
Those concerns have gained traction among some senators, complicating negotiations around the bill’s final language.
A Narrow Path to Compromise
One compromise under discussion would limit the ability to offer stablecoin rewards to regulated financial institutions. Coinbase has already applied for a national trust charter, a move that could allow it to continue offering rewards if such a framework is adopted.
That option, however, is contentious within the crypto industry. Many crypto-native firms argue it would effectively eliminate platform-based rewards as a viable business model, consolidating the activity within a narrow group of chartered institutions.
Legislative Momentum Slows
The standoff has begun to erode bipartisan support for the broader market structure bill. A Bloomberg Intelligence analyst estimated that if bipartisan backing fractures, the odds of the CLARITY Act passing in the first half of the year fall below 70%.
The timing matters. Lawmakers have positioned the bill as a cornerstone of U.S. crypto regulation, and delays could push the debate deeper into an election-sensitive period.
Political Leverage in Play
Coinbase’s warning reflects the industry’s growing political influence. The crypto sector has been one of the largest spenders in recent election cycles, a factor that strengthens its negotiating hand as talks intensify.
With the markup days away, the outcome now hinges on whether lawmakers are willing to redraw the bill to preserve stablecoin rewards, or risk losing the public support of one of the industry’s most powerful players.
