Coinbase Warns Stablecoin Reward Ban Could Benefit China
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Stablecoin Rewards Impact: Coinbase emphasizes that stablecoin rewards are designed to support payments rather than bank savings; despite US banks' concerns about potential deposit outflows, research indicates that users primarily utilize them for fast payments and online transactions, suggesting that banks' fears are somewhat misplaced.
- Pressure on the GENIUS Act: As Congress prepares to debate a larger crypto bill in 2026, major US banks are pushing to revisit the GENIUS Act, particularly the stablecoin rewards section, arguing that it could negatively impact their lending capabilities.
- Increased Competitive Pressure: A Coinbase executive noted that US banks earn over $360 billion annually from payment fees and interest on customer funds, while stablecoins offer a cheaper way to transfer money, with rewards making them more attractive for everyday use, thereby exerting pressure on the traditional payment system.
- China's First-Mover Advantage: While the US engages in internal debates, China has already begun paying interest on its digital yuan since January 2026, enhancing its attractiveness for cross-border trade and payments, which could gradually diminish the dollar's dominance in global payments.
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.
