Coinbase Says Stablecoin Reward Deal Revives Momentum for U.S. Crypto Bill
A key sticking point in U.S. crypto legislation has been resolved after lawmakers reached a compromise on stablecoin rewards, a development that Coinbase says preserves core user incentives.
Summary:
- Lawmakers reached a compromise on stablecoin rewards under the CLARITY Act.
- Coinbase says the deal protects usage-based rewards.
- The agreement clears a major hurdle for the bill’s progress in Congress.
According to information from Crowdfundinsider, the agreement, tied to the CLARITY Act, allows crypto platforms to offer rewards linked to real platform usage while restricting structures that resemble traditional bank interest. The breakthrough is expected to move the bill closer to final approval after months of stalled negotiations.
Compromise Draws Line Between Rewards and Interest
The agreement introduces a clear distinction between permissible crypto rewards and prohibited financial structures. Under the framework, companies can offer incentives tied to platform activity, such as payments, transfers, or network participation.
However, the bill bans rewards that function like interest on a bank deposit. Lawmakers targeted models that mimic traditional savings products, aiming to prevent crypto platforms from competing directly with regulated banking services.
Coinbase supported this distinction, arguing that rewards tied to real usage are fundamentally different from passive yield products.
Banks and Crypto Firms Reach Middle Ground
The compromise resolves a long-standing conflict between traditional financial institutions and crypto companies. Banks had pushed for stricter limits, warning that yield-like rewards could draw deposits away from the banking system.
Crypto firms, including Coinbase, argued that rewards are essential for user growth and network utility. They maintained that a full ban would harm innovation and reduce the competitiveness of U.S. platforms.
The final agreement reflects a negotiated balance. It restricts passive, interest-like returns while preserving incentives tied to active engagement.
Regulators Tasked With Defining Boundaries
The legislation directs regulators to create a formal framework governing reward programs. This includes disclosure requirements and a defined list of permitted reward activities.
READ MORE: Brazil Bars Crypto From Regulated Cross-Border Payments Under New FX Rules
Coinbase has emphasized that regulatory clarity is critical for long-term growth. The company views this framework as a step toward reducing uncertainty while maintaining compliance standards.
Industry Endorsement Signals Shift
Faryar Shirzad publicly backed the compromise, stating that while banks secured tighter restrictions, the deal protects what matters most – the ability for users to earn rewards based on real platform usage.
The final rewards text in the CLARITY Act is now public.
We’ve been clear throughout this process: much of this debate was based on imagined risks, not real evidence, nor was it based on a real understanding of how crypto actually works.
Nevertheless, the crypto industry showed… https://t.co/XoQ7Zp1Y39
— Faryar Shirzad 🛡️ (@faryarshirzad) May 1, 2026
This endorsement marks a shift from earlier resistance. Previous versions of the bill faced criticism from Coinbase due to more restrictive language.
Legislation Moves Closer to Passage
The compromise is expected to accelerate the bill’s path through Congress. Lawmakers are now likely to move it to the Senate Banking Committee for markup, followed by a potential full Senate vote.
With the House already having passed its version, progress in the Senate represents a key step toward final approval.
For Coinbase and the broader industry, the agreement signals that a workable regulatory framework for digital assets in the U.S. is finally taking shape.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
