Coinbase Threatens to Oppose CLARITY Act Over Stablecoin Rewards, Potential $1.3B Revenue Impact
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Stablecoin Rewards Dispute: Coinbase has informed U.S. lawmakers that it may withdraw support for the CLARITY Act if it restricts stablecoin rewards, a stance that directly impacts its core business and competition in the stablecoin market.
- Revenue Source at Risk: Coinbase's interest income from reserves backing Circle's USDC is projected to reach about $1.3 billion by 2025, and if rewards are curtailed, user willingness to hold USDC may decline, jeopardizing this revenue stream.
- Complex Legislative Background: Following the passage of the GENIUS Act, Coinbase argues that limiting platform-based rewards would undermine previously settled compromises, potentially hindering the advancement of the market structure bill and affecting the stability of the entire crypto industry.
- Increased Political Pressure: As the legislative process advances, Coinbase's threat to withdraw support, given its status as a major political donor, could influence congressional decisions, with analysts warning that further erosion of bipartisan support could sharply reduce the likelihood of the bill passing this year.
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.
