Coinbase head Brian Armstrong stated banning stablecoin rewards would “satirically” improve the corporate's profitability. He even claims the coverage hurts clients. This comes at a time when the crypto market is experiencing elevated promoting strain and “excessive concern” sentiment.
In a current submit, Armstrong wrote that Coinbase would profit financially if a ban on crypto rewards grew to become regulation. It is because the trade at the moment 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 don't need this to occur,” the Coinbase CEO stated in a submit, as clients must 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 corporations say rewards are important to draw customers and compete with offshore platforms.
Coinbase provides $USDC We provide compensation for featured headlines. As of February 2026, the platform is promoting a yield of three.50% per yr. $USDC Balanced. Nevertheless, this profit is proscribed 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 available on the market. 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 cut back prices for Coinbase. Exchanges generate income from: $USDC It was held each on and off the platform. That is executed via a partnership with our publishing firm, Circle. Exchanges earn a portion of their curiosity earnings from the greenback reserves that again their stablecoins. If rewards had been abolished, they might retain extra of the income slightly 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 response to 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 important 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 may be the Transparency Act, which goals to outline the regulatory boundaries between the Securities and Alternate Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC). It has stalled on account of disagreements over stablecoin rewards.
Coinbase has withdrawn assist on account of sure provisions. That is cited as a motive for the delay. A current White Home assembly sought to iron out variations between banks and crypto corporations. Nevertheless, they had been unable to make a breakthrough.
