Coinbase pressures Senate amid dispute over stablecoin rewards

Coinbase is stepping up outreach to lawmakers as the Senate prepares a final version of a digital asset market structure bill. The Senate Banking Committee has scheduled a markup for January 15, 2026.

Committee chairman Tim Scott announced the date in an official statement.

Coinbase representatives have signaled the company could reconsider its support for the package if the final text restricts rewards paid for holding stablecoins beyond expanded disclosure requirements.

The dispute centers on programs under which crypto platforms pay users a return on balances in U.S. dollar stablecoins, including USDC. The issue is that the GENIUS Act bars stablecoin issuers from paying interest based on ownership of a token, but it does not explicitly shut down similar incentives offered by intermediaries and platforms.

Banking associations argue these payouts are a workaround and are urging Congress to extend restrictions to affiliates and partners of issuers. The American Bankers Association prepared a letter to the Senate on the issue.

Coinbase and other industry participants say revisiting rewards after the GENIUS Act was adopted would inject uncertainty for users and businesses. Coinbase chief policy officer Faryar Shirzad has framed the debate as part of currency competition and pointed to plans in China to allow interest on e-CNY balances starting January 1, 2026. Coinbase’s broader regulatory strategy is explored in our Coinbase review.

As a possible compromise, lawmakers have discussed a model that would allow rewards only through regulated financial institutions. The talks come as the Office of the Comptroller of the Currency (OCC) in December 2025 announced conditional approval of five applications for national trust bank charters.

Coinbase has also pointed to a sharp rise in attention from authorities. In its Transparency Report 2025, the company said it received 12,716 requests from government and law-enforcement agencies between October 1, 2024, and September 30, 2025 about 19% more than the prior year.