Coinbase raised the USDC reward rate for paid members shortly after the U.S. Senate failed to launch consideration of the Clarity bill. The move drew market attention as debate continues over regulation of stablecoin rewards.

On Sept. 17, blockchain media outlet CoinPost reported that Coinbase raised the USDC reward rate for subscribers to its paid membership service, Coinbase One, to 3.75 percent.

The USDC reward is calculated daily based on balances and applies to members holding at least $1 worth of USDC. Coinbase One is a paid service with monthly or annual fees. It offers member-only benefits such as trading fee perks and USDC rewards.

What drew attention in this move was the timing of the rate increase. The U.S. Senate held a procedural vote on Sept. 16 to begin consideration of the Clarity bill, but it failed to secure the 60 votes needed after a 49-50 vote.

The Clarity bill includes provisions to clarify the regulatory framework for the crypto market in the United States. It also includes separate limits on rewards that stablecoin issuers and related services provide to users.

Banks have called for strict regulation, saying stablecoin rewards could effectively compete with deposit products. The crypto industry, meanwhile, has argued that limiting rewards offered to stablecoin users could weaken the competitiveness of related services.

With Coinbase raising the USDC reward rate immediately after the vote, some in the industry viewed the move as a message in the regulatory debate. One person described it as closer to a “satire” aimed at the banking sector.

Coinbase has not stated that the rate increase was a direct response to the Clarity bill being blocked. As the decision came as part of adjusting Coinbase One member benefits, the actual intent and the future policy direction need to be considered separately.

In the Senate vote, opposition from Democratic senators stood out, but 4 Republicans also broke ranks. Among them, Senators Josh Hawley and Jerry Moran were reported to have taken into account calls from the regional banking industry for tighter regulation of stablecoin rewards.

With the Clarity bill failing to clear the voting hurdle, the debate over future regulation of stablecoin rewards remains a variable. How the demands of the banking sector and the stance of the crypto industry are adjusted during renewed deliberations is in focus.

For Coinbase, expanding USDC rewards could be a way to attract paid members and a factor that could increase stablecoin use. If regulatory discussions resume, how much stablecoin rewards will be allowed is expected to emerge as one of the key issues.