Coinbase Announces Breakthrough Agreement on Key Crypto Bill Provision

WASHINGTON, May 2: Coinbase on Friday said lawmakers and industry stakeholders have reached an agreement on a contentious section of a landmark cryptocurrency bill, a breakthrough that may help the legislation advance in the U.S. Senate.
The compromise centres on stablecoin rewards, an issue that had delayed progress on the proposed crypto framework for months amid strong opposition from traditional banking institutions.
Banks had objected to provisions that would allow stablecoin issuers and cryptocurrency platforms to offer yield based incentives and rewards to users. Financial institutions argued that such offerings could pull customer deposits away from banks, weakening their ability to finance loans and other lending operations.
Crypto companies, however, maintained that reward systems are essential for attracting users and encouraging participation in digital asset ecosystems. Industry leaders warned that restricting such incentives would place crypto firms at a competitive disadvantage compared with conventional financial players.
According to Coinbase Chief Policy Officer Faryar Shirzad, the final agreement preserves the ability of Americans to continue earning rewards tied to genuine crypto platform activity while introducing tighter safeguards sought by the banking sector.
In a statement shared on social media platform X, Shirzad said banks succeeded in pushing for additional limitations on reward structures, but added that the broader principle of allowing consumers to benefit from crypto network participation remained protected.
Reports from Punchbowl News indicated that the compromise language was finalised by Senators Thom Tillis and Angela Alsobrooks.
The proposed text reportedly introduces a broad restriction on rewards that function similarly to interest payments associated with traditional bank deposits. The aim is to prevent stablecoin products from directly competing with savings accounts while still permitting limited incentive programmes linked to platform usage.
The compromise also calls for federal regulators to draft a new set of stablecoin-specific regulations. These measures are expected to include enhanced disclosure standards for issuers and clearer guidelines outlining which forms of rewards and promotional activities would be permitted under the law.
Reuters said it could not independently verify the reported details of the agreement.
The broader legislation, known as the Clarity Act, is designed to establish a comprehensive legal framework for digital assets in the United States. Supporters argue the bill would reduce regulatory uncertainty that has long hindered growth and investment in the cryptocurrency industry.
Crypto executives have repeatedly complained that inconsistent oversight and overlapping regulatory jurisdictions have forced many firms to operate in uncertain legal territory. Industry advocates believe clearer rules could accelerate mainstream adoption of blockchain-based financial products.
The bill is also seen as part of a wider push by the administration of Donald Trump to support digital asset innovation. Trump, who actively courted cryptocurrency investors during his presidential campaign, has made crypto reform a major policy focus during his second term.
The president’s family has also been linked to crypto-related business ventures, including involvement in digital tokens, further highlighting the administration’s growing alignment with the industry.
Analysts say the latest compromise could help revive momentum for crypto legislation in Congress at a time when lawmakers are under pressure to modernise financial regulations in response to the rapid growth of digital assets and stablecoin markets.
If passed, the legislation could mark one of the most significant overhauls of U.S. cryptocurrency regulation to date, potentially influencing global standards for the digital finance sector.