Coinbase may reconsider support for US market structure bill: Bloomberg

Coinbase Global may reconsider its support for the U.S. crypto market structure bill if it restricts rewards for stablecoin holders. The exchange is intensifying lobbying efforts as lawmakers prepare to unveil the bill. Proposed limits could impact Coinbase's revenue from stablecoin rewards, projected to reach $1.3 billion in 2025. Banking groups advocate for tighter restrictions, arguing that such rewards could divert deposits from traditional banks. This dispute may strain bipartisan support for the bill, which aims to clarify oversight between the SEC and CFTC.

Coinbase Global may reconsider its support for the U.S. crypto market structure bill if it imposes restrictions on offering rewards for stablecoin holders beyond enhanced disclosure requirements, according to a Bloomberg report.

The largest U.S. crypto exchange is reportedly intensifying its lobbying efforts as lawmakers prepare to unveil the bill Monday, with a markup scheduled in two Senate committees on Thursday. Sources familiar with the matter told Bloomberg that Coinbase views any broader limits as unacceptable, given the importance of stablecoin rewards to its business model.

Under the framework established by the GENIUS Act, signed into law in July 2025, stablecoin issuers such as Circle are prohibited from paying direct interest or yield to users for holding the token. However, the law does not prevent third-party platforms like Coinbase from providing rewards based on user balances.

According to Bloomberg, one option under discussion in the market structure bill would limit rewards to regulated financial institutions. While Coinbase has applied to become a national trust charter, the company and other crypto firms advocate preserving platform-based rewards to foster competition.

The Block has reached out to Coinbase for further comment.

Exchanges v. Banks

Coinbase, which partners with Circle and shares some interest income from reserves backing USDC, offers incentives such as 3.5% rewards on Coinbase One balances. The company also holds a small stake in Circle. Coinbase's stablecoin-related revenue is reportedly projected to reach $1.3 billion in 2025, and further limits would deal a critical blow to that revenue stream.

Coinbase Chief Policy Officer Faryar Shirzad previously argued that limiting rewards on stablecoins could give global rivals an edge in the digital currency race, citing China's ongoing move to pay interest on its digital yuan.

Banking industry groups have pushed for tighter restrictions, arguing that yield-like rewards on stablecoins could divert deposits from traditional banks and undermine community lending to small businesses, farmers, students, and homebuyers. They also argue that crypto platforms lack the safeguards of FDIC-insured products.

The Bloomberg report said this dispute is straining bipartisan support for the broader market-structure bill, which aims to clarify oversight between agencies like the SEC and CFTC. Coinbase's latest statement carries significant impact, as the company is one of the largest donors to President Donald Trump during and after his election campaign.

The Trump administration has prioritized the swift passage of crypto legislation following the GENIUS Act. However, tension over rewards could lead to delays or failure to advance the legislation within the anticipated timeline.

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