Coinbase Wins Activity-Based Rewards in US Crypto Bill Deal
Senators Thom Tillis and Angela Alsobrooks finalized compromise text that prohibits rewards economically equivalent to bank deposit interest, ending a months-long standoff over stablecoin provisions in landmark crypto legislation.
Key Takeaway
US crypto firms can offer activity-based rewards but not passive stablecoin yield that competes with banks.
Coinbase Chief Policy Officer Faryar Shirzad announced on Friday that banks secured more restrictions on crypto rewards, but his company protected what matters most — the ability for Americans to earn rewards based on real platform usage.
Senators Thom Tillis and Angela Alsobrooks finalized compromise text that prohibits rewards offered in a manner economically or functionally equivalent to interest on bank deposits, according to Punchbowl News. The deal ends a months-long standoff that stalled landmark crypto legislation when banks opposed yield-bearing provisions, arguing such products would lure deposits away and make lending harder.
Crypto firms pushed back hard, insisting they must offer rewards to compete for customers. The compromise directs regulators to propose new stablecoin regulations, develop a disclosure regime, and create a list of permissible reward activities tied to actual network usage like payments and transfers.
The bill can now advance in the US Senate. Crypto companies have operated in a regulatory gray area for years, and the Clarity Act aims to establish clear rules defining when the SEC or CFTC has jurisdiction over digital assets. President Donald Trump prioritized crypto reform during his second administration after courting crypto cash on the campaign trail, with Coinbase rejecting draft language in March that the company argued was too broad and could block legitimate consumer benefits.
This article was written based on reporting from Dzrh.
