Coinbase said on Friday that senators have reached a deal on a pivotal provision in proposed cryptocurrency legislation that could allow the bill to advance in the U.S. Senate.
The point of contention earlier in the year centered on language that would permit stablecoin issuers and crypto platforms to provide yield-bearing products and other rewards paid in stablecoins. Banks had objected to that approach, arguing such rewards could draw deposits away from banks and complicate their ability to fund lending.
Crypto firms including Coinbase had countered that the ability to offer rewards is essential to attracting customers and that an outright ban on such programs would be anticompetitive. In a post on X, Coinbase's Chief Policy Officer Faryar Shirzad said the compromise increased restrictions on rewards at the banks' insistence but preserved the core ability for Americans to earn rewards when those rewards reflect "real usage of crypto platforms and networks."
Reporting by Punchbowl News on the compromise text, finalized by Senators Thom Tillis and Angela Alsobrooks, described a broad prohibition on rewards delivered "in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit." The same reporting also indicated that the compromise directs regulators to draft a new suite of stablecoin regulations, including a dedicated stablecoin disclosure regime and a list of permissible reward activities. Reuters could not immediately verify that report.
The proposed framework aims to resolve a regulatory gray area in which many crypto companies have been operating, a condition executives have said has impeded business development. The legislative proposal, identified in coverage as the Clarity Act, is presented as an effort to establish clearer rules that proponents believe would support broader cryptocurrency adoption.
The article also notes that President Donald Trump, who sought crypto-related support during his campaign and whose family has benefited from its own token, has made crypto reform a priority in his second administration.
Market context in the original reporting included references to Coinbase Global Inc and its ticker COIN.
Next steps: With the compromise language reportedly finalized by senators, the provision at the center of the earlier stall is clearer. The text's direction to regulators for a disclosure regime and an approved list of reward activities signals additional rulemaking to follow, although the timeline and final regulatory specifics remain to be set by the agencies responsible for implementation.