Coinbase Threatens to Withdraw Support for Stablecoin Bill, Revenue Projected at $1.3 Billion by 2025
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Regulatory Tensions: Coinbase threatens to withdraw support for a U.S. crypto market-structure bill due to new limits on stablecoin rewards, which could directly impact its projected revenue of $1.3 billion by 2025 and reshape its competition with banks.
- Revenue Model Risks: Chief Policy Officer Faryar Shirzad argues that limiting stablecoin rewards would undermine the competitiveness of U.S. dollar-linked digital assets, especially as China announces interest payments on its digital yuan, highlighting competitive pressures in the digital asset space.
- Market Structure Changes: The GENIUS Act allows exchanges to offer stablecoin rewards but prohibits issuers from doing so; Coinbase's warning may compel other exchanges to seek new regulatory strategies, potentially leading to significant structural changes in the crypto industry.
- Innovation vs. Compliance: This regulatory tension underscores the delicate balance between innovation and compliance within the crypto sector, with Coinbase's stance likely influencing trading environments for assets like BTC and ETH, further exacerbating market uncertainties.
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.
