Coinbase could withdraw its support for the CLARITY Act, a crypto market structure bill under discussion in the U.S. Senate, if it bans stablecoin rewards, Cointelegraph reported on Jan. 12.
The CLARITY Act currently includes a provision that would prohibit stablecoin issuers from offering rewards on crypto exchanges and platforms. The financial sector is wary that, without a ban on rewards, trillions of dollars could flow out of traditional finance into the crypto market, but the crypto industry is strongly opposed.
Stand With Crypto has responded actively, including sending more than 135,000 emails to senators to block passage of the bill. Coinbase is also applying for a national trust bank charter to establish a legal basis for providing stablecoin rewards. The financial sector is moving to tighten the provision in the CLARITY Act to prevent this.
Coinbase is offering about 3.5 percent in rewards in cooperation with Circle, the issuer of the dollar stablecoin USDC.
Chi-gyu Hwang
delight@d-today.co.kr