Coinbase, PayPal maintain stablecoin rewards, claiming exemption as non-issuers

American firms like Coinbase and PayPal have reaffirmed their commitment to offering rewards on stablecoin deposits, despite the recently enacted GENIUS Act, which prohibits stablecoin issuers from paying yield to holders, according to Decrypt. In recent earnings calls, both companies emphasized that they are not the issuers of the stablecoins tied to their platforms: USDC is issued by Circle, and PYUSD by Paxos. By distancing themselves from issuance, executives argued that the incentives they offer are structured as “rewards,” not interest or yield. Coinbase currently offers U.S. users a 4.1% annual return on USDC deposits, while PayPal began offering a 3.7% return on PYUSD earlier this year.