Coinbase Considers Withdrawing Support for U.S. Crypto Bill Due to Stablecoin Reward Restrictions
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Legislative Risk: Coinbase is reportedly considering withdrawing support for a U.S. crypto market structure bill due to potential restrictions on stablecoin reward mechanisms, which could significantly impact its stablecoin revenue model.
- Revenue Model Disruption: Should the legislation curtail rewards, Coinbase's revenue model would face substantial challenges, particularly as stablecoin rewards are a crucial income source during market downturns.
- Market Dynamics Shift: The proposed policy changes could alter the dynamics of the stablecoin market, prompting users to seek alternative yield sources and potentially migrate towards decentralized finance (DeFi).
- Policy Advocacy: Coinbase's Chief Policy Officer argues that preserving the ability to pay stablecoin rewards is essential for maintaining U.S. dollar dominance, reflecting the company's strategic considerations in the legislative process.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
