Coinbase may oppose crypto bill if it bans stablecoin rewards, Bloomberg reports

U.S. crypto exchange Coinbase is considering withdrawing its support for the CLARITY Act if a provision banning stablecoin rewards is added, Bloomberg reported, citing sources familiar with the matter. The report noted that a withdrawal of support or active lobbying against the bill by Coinbase could have a significant impact, as the crypto industry, led by the exchange, made substantial donations during the 2023-2024 election cycle. Coinbase alone donated $1 million to President Donald Trump's inauguration. The issue is critical for Coinbase, as stablecoin rewards are a key part of its business. The company shares interest income generated from USDC reserves with Circle. For users, USDC deposited on Coinbase provides a source of stable returns, particularly during bear markets.