The post Crypto News: Coinbase May Rethink Backing Crypto Bill, Bloomberg Reports appeared on BitcoinEthereumNews.com.

Coinbase signals possible withdrawal of support for a U.S. crypto bill as stablecoin reward limits raise revenue and policy concerns. Coinbase has warned lawmakers it may reconsider backing a major U.S. crypto bill. The concern centers on stablecoin rewards. According to Bloomberg, the exchange considers further restrictions to be detrimental. As a result, lobbying efforts have increased as Congress prepares to roll out the legislation. Stablecoin Rewards Become Central Policy Flashpoint Meanwhile, stablecoin incentives are essential to Coinbase’s business model, which still faces pressure to earn profit and maintain its position. The exchange receives the interest from the reserves that back Circle’s USDC in common. Therefore, rewards encourage users to hold balances on Coinbase. During times of downturn in the market, this income gives stability and a predictable cash flow. Related Reading: Coinbase to Pause USDC-Peso Trading in Argentina Starting January 2026 | Live Bitcoin News However, the GENIUS Act is a restriction on the issuers already signed in July 2025. Under the law, stablecoin issuers cannot distribute direct interest. Circle, for example, must conform totally. Nevertheless, the framework enables third-party platforms to provide rewards on their own. Currently, Coinbase pays up to 3.5% rewards on USDC balances. This incentive funds user retention and liquidity. According to Bloomberg data, the stablecoin revenue of Coinbase reached $1.3 billion in 2025. Therefore, the proposed limits are material financial risk. Meanwhile, lawmakers are planning to release the market structure bill on Monday. Senate committee markups are set for Thursday. Sources informed Bloomberg that Coinbase is against restrictions beyond increased disclosures. Any wider limits are still unacceptable to the exchange. Traditional banks are in favour of tighter limits. They believe stablecoin rewards take deposits away from banks. As a result of this, banks feel competitive pressure increase. This opposition adds to the policy divide…

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Filed under: News - @ January 12, 2026 11:25 am