New York, January 12, 2026, 12:22 EST — Regular session
- Shares of Coinbase climbed after a report revealed the exchange is lobbying lawmakers to safeguard stablecoin “rewards”
- Legislation targeting market structure is set to emerge before a Senate committee markup scheduled for this week
- Investors are tracking if restrictions get included in the text and if the industry coalition stays intact
Shares of Coinbase Global Inc rose Monday following a Bloomberg Law report that the crypto exchange is pressing U.S. lawmakers to keep the “rewards” it pays to stablecoin holders. The company might withdraw support for a key market-structure bill if the proposed restrictions become too strict. 1
The timing is crucial. Senate negotiators aim to finalize a wide-ranging framework for crypto markets, but stablecoin rewards have sparked a last-minute battle between banks and crypto firms, each pushing to influence the final wording.
Coinbase climbed roughly 2.1% to $245.83 by midday. Bitcoin edged up about 0.5%, hovering near $92,218. Robinhood Markets added around 2.5%, but Circle Internet Group, the company behind the USDC stablecoin, dipped close to 0.9%.
Stablecoins are crypto tokens built to maintain a consistent value, typically pegged to the U.S. dollar. The so-called “rewards” act like interest payments, even if they’re presented as loyalty-style perks.
Industry insiders have proposed restricting rewards to regulated financial firms, The Business Times reported. Coinbase reportedly applied for a national trust charter to continue offering these rewards amid stricter regulations. The same piece noted Coinbase offers 3.5% rewards on certain Coinbase One USDC balances and shares interest income from USDC reserves with Circle. 2
Banking groups warn the incentives might drain deposits from banks, hitting lending—particularly at smaller institutions. The Bank Director newsletter referenced a letter from the American Bankers Association, which highlighted a Treasury estimate saying, “Without this prohibition, Treasury has estimated that $6.6 trillion in bank deposits are at risk.” 3
Coinbase policy chief Faryar Shirzad is pushing the narrative that this dispute centers on competition, not safety. On X, he cautioned that stablecoin rewards “remain under debate,” according to CryptoSlate. The post drew attention to bank revenue from Federal Reserve balances and card fees—figures Coinbase backers cite to argue the battle is really about safeguarding profit margins. 4
A crypto advocacy group jumped on the news. On Monday, the National Cryptocurrency Association unveiled a poll showing 48% of respondents support allowing stablecoin rewards, while just 12% oppose them. Its president, Stuart Alderoty, said, “Americans overwhelmingly support choice.” 5
The bill remains a draft, and the wording around rewards might change quickly as amendments roll in. Should lawmakers tighten rules on platform-paid rewards, Coinbase could see its stablecoin-linked revenue take a hit, just as its main trading business stays vulnerable to crypto price volatility.
Traders await the release of the bill text and Thursday’s committee markup, where any tweaks to stablecoin rewards might determine if banks and crypto firms remain aligned or turn against each other, potentially derailing the package.
