Coinbase head Brian Armstrong stated a ban on stablecoin rewards would “mockingly” make the corporate extra worthwhile. He even argues that the coverage would hurt prospects. This is available in when the crypto market is coping with elevated promoting strain and sentiments dipping in “Excessive Concern.”
In a current publish, Armstrong wrote that if a crypto rewards ban grew to become legislation, Coinbase would profit financially. It is because the trade at present pays out massive quantities in rewards to customers holding $USDC. The stablecoin market cap is on a surge and hovers round $314 billion.
Coinbase defends $USDC yield payouts
Coinbase CEO in a publish talked about that “However we don’t need this to occur,” as prospects ought to proceed receiving rewards. He added that the regulated US stablecoins ought to stay aggressive globally. These feedback landed as lawmakers are debating the provisions within the pending market construction laws invoice that might limit curiosity or rewards paid on stablecoins.
Banks have reportedly pushed for language prohibiting such payouts. They argue that yield-bearing stablecoins may draw deposits away from insured lenders. In a manner, it may threaten monetary stability, they insist. In the meantime, crypto companies say that rewards are important to attracting customers and competing with offshore platforms.
Coinbase gives $USDC rewards as a headline characteristic. As of February 2026, the platform advertises a 3.50% annual yield on $USDC balances. Nevertheless, this profit is restricted to Coinbase One subscribers which is a paid membership on the platform. Free accounts now not earn rewards.
Tether’s USDT is the most important stablecoin available in the market. It holds a circulation of greater than 183 billion. Circle’s $USDC stands 2nd within the tally with a circulation of over 73.4 billion. The Trump family-backed stablecoin, USD1, went on to hit the 5.28 billion circulation mark.
Coinbase margins in focus
Looking at it from the monetary outlook, a ban may cut back Coinbase’s prices. The trade generates income from $USDC held on and off its platform. That is carried out via its partnership with issuer Circle. The trade earns a share of curiosity earnings from the greenback reserves backing the stablecoin. If rewards had been eradicated, then it might retain extra of that curiosity unfold quite than distributing a portion to customers.
Information exhibits that the stablecoin operations have change into a rising contributor to Coinbase’s income combine. Its recent quarterly outcomes present that subscription and providers income rose 13.5% to $727.4 million. Stablecoin income elevated to $364.1 million from $225.9 million.
Amid this progress, Cryptopolitan reported that Coinbase printed a internet lack of $666.7 million, or $2.49 per share, for the quarter ended Dec. 31. Transaction income fell sharply as digital asset costs slumped within the remaining months of 2025.
The worldwide crypto market retreated from early October highs. It was a response to President Donald Trump’s new tariffs on Chinese language imports and anticipated export controls on vital software program. Bitcoin value has dropped by nearly 30% within the final 30 days. It’s working down by greater than 45% from its all time excessive (ATH) of $126,198 recorded on October 7 2025. BTC is buying and selling at a median value of $68,868 on the press time.
The stablecoin debate has bagged the highlight among the many traders. The GENIUS Act, which was handed final 12 months, created a federal framework for stablecoins. On the opposite facet, there’s the Readability Act that goals to outline regulatory boundaries between the Securities and Trade Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC). It has been stalled amid disagreements over stablecoin rewards.
Coinbase withdrew its assist over sure provisions. This has been cited as an element within the delay. A current White Home assembly tried to repair the variations between banks and crypto companies. Nevertheless it ended and not using a breakthrough.
