Coinbase Considers Withdrawing Support for U.S. Crypto Legislation Over Stablecoin Rewards
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Legislative Support Withdrawal: Coinbase is reportedly considering withdrawing its support for a U.S. crypto market-structure bill due to provisions that may restrict stablecoin rewards, which are crucial for its revenue and could lead to decreased user engagement.
- Market Dynamics Impact: The potential restrictions on stablecoin rewards could threaten Coinbase's interest income from USDC reserves shared with Circle, thereby impacting its overall financial performance and revenue strategies.
- Liquidity Risks: If stablecoin regulations are enforced, it may affect liquidity in U.S. trading pairs, potentially leading to decreased transaction volumes for Bitcoin and Ethereum, thereby increasing market uncertainty.
- Policy Complexity: This situation highlights the tension between innovation and regulation, as Coinbase's Chief Policy Officer emphasizes that preserving stablecoin rewards is vital for maintaining U.S. dollar dominance, especially in light of China's decision to pay interest on its digital yuan.
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.
