Coinbase threatens to end support for the cryptocurrency bill due to rewards on stablecoins
Coinbase threatens to end support for the cryptocurrency bill due to rewards on stablecoins
Coinbase is pressuring U.S. lawmakers as Congress prepares to release a major bill on the crypto market structure on January 12.
Banking lobby against crypto companies
Coinbase intensifies pressure on US lawmakers as Congress prepares to unveil a comprehensive cryptocurrency market structure bill. The question is: will exchanges like Coinbase be able to continue offering rewards to customers who hold stablecoins? The crypto exchange has indicated that it may withdraw support for the legislation if restrictions go beyond disclosure requirements, according to people familiar with the company's position.
According to a Bloomberg report, the bill is expected to be released on January 12, with further consideration in the Senate committee anticipated later that same week. One of the proposals being discussed in the context of the bill would limit rewards for stablecoins to institutions under regulation—a step supported by banks that argue that yield accounts could siphon deposits from traditional lenders. Coinbase, which has applied for a national trust charter, could ultimately comply with such rules.
