Stablecoin Rewards: A Fight for Crypto's Future

A big fight is happening in the U. S. over stablecoin rewards.

Coinbase vs. Banks

• Coinbase, a major crypto company, is pushing back against new rules that could hurt its business.
• The issue is about who can offer rewards on stablecoins like USDC.
• Coinbase makes a lot of money from these rewards.
• Banks want to change the rules so only they can offer them.

Impact on Crypto Bill

• This fight is making it harder for a big crypto bill to pass.
• The bill is supposed to set rules for the crypto market.
• But banks and crypto companies can't agree on stablecoin rewards.
• This is slowing things down.
• If the bill doesn't pass soon, it might get stuck because of politics.

Coinbase's Warning

• Coinbase warns that new rules could cut its earnings.
• It made about $1.3 billion from stablecoin rewards last year.
• If the rules change, people might move their USDC to other places.
• This could hurt Coinbase's profits.

Competition and Global Impact

• The fight is also about competition.
• Crypto companies say the new rules would make it harder for them to compete.
• Banks want to close a loophole that lets exchanges offer rewards.
• Crypto firms argue this would weaken the dollar's global position.

Time Running Out

• Analysts say time is running out.
• The bill needs to pass by the second quarter of this year.
• If not, it might get delayed because of elections.
• Even if a pro-crypto president like Trump wins, the bill could still stall.