Coinbase Stock (COIN) in Focus as Stablecoin Rewards Face Senate Scrutiny

Tip Ranks
2026.01.12 03:29
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Coinbase Global (COIN) is closely monitoring a significant crypto bill under Senate review that may impose limits on rewards for stablecoin holdings, which are crucial to its business model. The company may withdraw support for the bill if strict regulations are included. Lawmakers are divided, with banks favoring restrictions to protect traditional deposits, while crypto firms like Coinbase argue it would hinder competition. Stablecoin rewards are a vital revenue source for Coinbase, projected to reach $1.3 billion by 2025. Wall Street rates COIN stock as a Moderate Buy with a target price of $361.63, suggesting a 50.19% upside.

Coinbase Global (COIN), the largest crypto exchange in the U.S., is monitoring a major crypto bill as it approaches Senate review, according to a Bloomberg report.

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At the center of the debate is whether crypto platforms should be allowed to continue offering rewards on stablecoin holdings. Coinbase views those rewards as a core part of its platform and is concerned that new limits under discussion could disrupt that model.

Reportedly, Coinbase may reconsider its support for the bill if the final verdict includes strict limits on rewards. The legislation is expected to face markup in at least one Senate committee this week. However, Coinbase has not issued any public response yet.

Banks and Crypto Firms Take Opposite Sides

Some lawmakers are considering rules that would allow only banks or licensed financial firms to offer stablecoin rewards. Banks support this idea, saying that rewards could pull deposits out of the traditional banking system and reduce lending.

Crypto firms, including Coinbase, oppose the move. They argue that restricting rewards to banks would give traditional lenders an unfair edge and make it harder for crypto platforms to compete.

Stablecoin Rewards Drive a Key Revenue Stream

Stablecoin rewards are a meaningful income source for Coinbase. The company earns interest from reserves backing USDC, a dollar-linked stablecoin issued by Circle (CRCL). When users hold USDC on Coinbase, that interest provides steady income, even when trading slows.

To support those balances, Coinbase offers rewards of about 3.5% on certain USDC holdings. If new rules curb those incentives, users may move stablecoins elsewhere.

That could pressure results. Stablecoin-related revenue is expected to reach about $1.3 billion in 2025, based on Bloomberg data, making it an important part of Coinbase's business.

Is COIN Stock a Buy, Sell, or Hold?

Overall, Wall Street has a Moderate Buy consensus rating on Coinbase Global stock based on 17 Buys, seven Holds, and one Sell recommendation. The average COIN stock price target of $361.63 indicates 50.19% upside potential.

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