Coinbase said a deal has been reached on one of the most contentious provisions in a major U.S. crypto market structure bill, potentially paving the way for long-delayed legislation to move forward.
The dispute centered on whether crypto platforms should be allowed to offer rewards or yield on stablecoin holdings, a feature widely used to attract users. The issue had stalled progress on the bill for months, as traditional financial institutions pushed back against the idea.
Banks argued that allowing stablecoin rewards could lead to deposit flight from the banking system, as customers might shift funds into digital assets offering returns outside traditional savings accounts. Crypto firms, on the other hand, maintained that incentives are critical for user adoption and market competitiveness.
Under the newly reached agreement, stablecoin rewards will be permitted but with restrictions. The compromise ensures that such incentives cannot fully replicate traditional bank interest products and will likely be subject to regulatory oversight and structural limitations.
The breakthrough is seen as a key step toward advancing a broader U.S. crypto regulatory framework, which aims to define market rules, clarify oversight responsibilities, and support innovation in the digital asset sector.
Industry participants have long called for clearer regulations, arguing that uncertainty has slowed growth and discouraged institutional participation.
Lawmakers have been working to balance innovation with financial stability, particularly as digital assets increasingly intersect with traditional banking.
The agreement on stablecoin rewards removes a major obstacle in negotiations and could accelerate legislative momentum in the coming months.
If passed, the bill would represent one of the most significant regulatory developments for the U.S. crypto industry, shaping how companies operate and how consumers interact with digital assets in the years ahead.
The development highlights growing efforts to integrate crypto into mainstream finance while addressing systemic risks.
