Coinbase Warns of Withdrawal from Stablecoin Bill, Potentially Impacting $1.3 Billion Revenue
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 11 2026- Legislative Risk Warning: Coinbase has indicated that it may withdraw support for a key digital asset bill if new restrictions threaten its ability to pay customers holding stablecoins, which could undermine its competitive position in the stablecoin market.
- Revenue Dependency: Coinbase shares interest income from the USDC stablecoin with Circle, with total stablecoin earnings projected to reach $1.3 billion by 2025; restrictions on rewards could directly impact user willingness to store stablecoins on the platform.
- Political Influence: Coinbase has invested heavily in the 2023-2024 election cycle, demonstrating its influence in the legislative process, particularly regarding the stablecoin rewards issue, which could jeopardize bipartisan cooperation.
- Market Uncertainty: The reward provisions of the new bill are still under discussion, and Coinbase's warning could delay the legislative process, with analysts estimating the odds of passage in the next six months dropping below 70%, increasing market uncertainty.
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.
