Coinbase Threatens to Withdraw Support for Crypto Bill Over Stablecoin Rewards
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Legislative Support Threat: Coinbase Global, Inc. has warned U.S. lawmakers that it may cease supporting the federal crypto bill if it includes strict limits on stablecoin rewards, which would directly impact USDC holders' earnings and significantly affect the company's revenue.
- Competitiveness Concerns: Coinbase's Chief Policy Officer, Faryar Shirzad, emphasized that restrictions on stablecoin rewards could undermine the competitiveness of the U.S. dollar, particularly in light of China's decision to pay interest on its digital yuan, potentially affecting the U.S. position in the global crypto market.
- Risk to Bill Progression: The potential withdrawal of support by Coinbase could jeopardize the bill's progression, especially as key industry players, including those from the banking sector, are actively discussing its provisions, with significant financial implications that may exacerbate regulatory uncertainty around stablecoins.
- Historical Context Impact: Coinbase's strategic actions could influence U.S. legislative progress, as similar regulatory debates, such as the GENIUS Act, indicate challenges in ensuring competitive dynamics in the stablecoin market, which will shape future technological adoption and financial regulatory frameworks.
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.
