Sydney — Coinbase Global Inc. announced on Friday that a critical agreement has been reached on a key provision within a landmark cryptocurrency legislation, potentially clearing the path for the bill to advance in the U.S. Senate. Coinbase Global Inc. operates as a major cryptocurrency exchange, enabling users to buy, sell, and store various digital assets. The legislation, which had stalled earlier this year, faced significant opposition from traditional banks regarding a provision that would allow stablecoin issuers and crypto firms to offer yield-bearing products.
Banks argued that these reward schemes could divert crucial deposits, making it more challenging for them to fund lending operations. Conversely, major crypto entities, including Coinbase, asserted that the ability to offer such rewards is essential for customer acquisition and that a prohibition would be anticompetitive. Coinbase’s Chief Policy Officer, Faryar Shirzad, stated in a post on X, “In the end, the banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of crypto platforms and networks.” Punchbowl News, citing Senators Thom Tillis and Angela Alsobrooks, reported the compromise includes a broad prohibition on rewards offered “in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.”
The reported compromise also directs regulators to propose a new series of stablecoin regulations, encompassing a new disclosure regime and a defined list of permissible reward activities. Reuters could not immediately verify this report. Crypto companies have long operated within a regulatory grey area in the U.S., a situation executives contend has hindered their growth. The proposed Clarity Act aims to establish clear regulatory frameworks, which industry stakeholders hope will foster greater cryptocurrency adoption. Former President Donald Trump, who has actively courted crypto support, has also reportedly prioritised crypto reform during his second administration.
