Coinbase chief Brian Armstrong mentioned the ban on stablecoin rewards would “mockingly” enhance the corporate’s profitability. He even claims the coverage hurts prospects. This comes at a time when the crypto market is experiencing elevated promoting strain and sentiment of “excessive worry.”
In a latest put up, Armstrong wrote that Coinbase would profit financially if a ban on crypto rewards grew to become regulation. It is because the alternate presently pays a considerable amount of compensation to its customers for holding it. $USDC. The market capitalization of stablecoins has skyrocketed and hovers round $314 billion.
Coinbase protects $USDC generate a payout
“However we do not need this to occur,” Coinbase’s CEO mentioned in a put up, as a result of prospects have to proceed receiving rewards. He added that regulated US stablecoins ought to stay aggressive globally. These feedback got here as lawmakers are debating provisions in a pending market construction invoice that might restrict the curiosity and costs paid on stablecoins.
Banks are reportedly requesting language prohibiting such funds. They declare that high-yielding stablecoins have the potential to attract deposits from insured lenders. In some methods, they argue, this might threaten monetary stability. In the meantime, crypto firms say rewards are important to draw customers and compete with offshore platforms.
Coinbase affords $USDC We provide compensation for featured headlines. As of February 2026, the platform is promoting a yield of three.50% per yr. $USDC Balanced. Nonetheless, this profit is restricted to Coinbase One subscribers, which is a paid membership to the platform. Free accounts can not earn advantages.
Tether’s USDT is the biggest stablecoin in the marketplace. The circulation is over 183 billion copies. Circle’s $USDC It ranks second in circulation with over 73.4 billion copies. The stablecoin USD1, backed by the Trump household, has reached 5.28 billion cash.
Take note of Coinbase’s margins
From a monetary perspective, the ban may scale back prices for Coinbase. Exchanges generate income from: $USDC It was held each on and off the platform. That is carried out by means of a partnership with our publishing firm, Circle. Exchanges earn a portion of their curiosity revenue from the greenback reserves that again their stablecoins. If rewards have been abolished, they might retain extra of the income quite than distribute a portion of that curiosity unfold to customers.
Information reveals that the stablecoin enterprise has more and more contributed to Coinbase’s income combine. In line with the corporate’s newest quarterly outcomes, subscription and providers income elevated 13.5% to $727.4 million. Stablecoin income elevated from $225.9 million to $364.1 million.
Amid this development, Cryptopolitan reported that Coinbase posted a web lack of $666.7 million, or $2.49 per share, for the quarter ended December 31. As digital asset costs slumped within the final months of 2025, buying and selling revenues declined considerably.
The worldwide cryptocurrency market has retreated from its highs in early October. This was a response to President Donald Trump’s new tariffs on Chinese language imports and anticipated export restrictions on vital software program. Bitcoin value has fallen about 30% previously 30 days. It’s down greater than 45% from its all-time excessive (ATH) of $126,198 recorded on October 7, 2025. On the time of writing, the typical value of BTC is buying and selling at $68,868.
The stablecoin debate is gaining consideration amongst traders. The GENIUS Act, handed final yr, created a federal framework for stablecoins. Alternatively, there’s the Transparency Act, which goals to outline the regulatory boundaries between the Securities and Trade Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC). It has stalled as a result of disagreements over stablecoin rewards.
Coinbase has withdrawn assist as a result of sure provisions. That is cited as a purpose for the delay. A latest White Home assembly sought to iron out variations between banks and crypto firms. Nonetheless, they have been unable to make a breakthrough.
