Coinbase head Brian Armstrong stated a ban on stablecoin rewards would “satirically” 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 Worry.”
In a latest submit, Armstrong wrote that if a crypto rewards ban grew to become regulation, Coinbase would profit financially. It’s because the change at present pays out giant 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 submit 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 might draw deposits away from insured lenders. In a method, it might threaten monetary stability, they insist. In the meantime, crypto companies say that rewards are important to attracting customers and competing with offshore platforms.
Coinbase provides $USDC rewards as a headline characteristic. As of February 2026, the platform advertises a 3.50% annual yield on $USDC balances. Nonetheless, this profit is restricted to Coinbase One subscribers which is a paid membership on the platform. Free accounts not earn rewards.
Tether’s USDT is the most important stablecoin out there. 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
Having a look at it from the monetary outlook, a ban might cut back Coinbase’s prices. The change generates income from $USDC held on and off its platform. That is completed via its partnership with issuer Circle. The change earns a share of curiosity revenue from the greenback reserves backing the stablecoin. If rewards had been eradicated, then it will retain extra of that curiosity unfold slightly than distributing a portion to customers.
Information reveals that the stablecoin operations have turn 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 development, Cryptopolitan reported that Coinbase printed a web 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 important software program. Bitcoin worth 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 mean worth of $68,868 on the press time.
The stablecoin debate has bagged the highlight among the many buyers. The GENIUS Act, which was handed final yr, 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 latest White Home assembly tried to repair the variations between banks and crypto companies. Nevertheless it ended and not using a breakthrough.
