US cryptocurrency exchange Coinbase is increasing pressure on US lawmakers to resist proposals to ban certain decentralized finance (DeFi) provisions in a major cryptocurrency bill called the CLARITY Act. Bloomberg, citing sources familiar with the matter, reports that Coinbase may reconsider its support for the bill if it restricts stablecoin issuers from offering rewards on platforms like crypto exchanges. Banking groups are concerned that stablecoin rewards and yield products could siphon trillions of dollars from the traditional banking system. The GENIUS Act, passed in July 2025, prohibits stablecoin issuers from providing interest or yield to holders, but does not explicitly prohibit third parties like crypto exchanges from offering rewards. The banking industry is currently trying to close this loophole through the CLARITY Act. Stablecoins have become a major source of revenue for Coinbase, contributing nearly $247 million in revenue in the fourth quarter of 2024. The US Senate Banking Committee is expected to discuss the issue at its meeting this Thursday.
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