Coinbase Opposes Bank Lobby to Block Stablecoin Rewards
Coinbase has formally opposed US banking lobbyists’ push to extend the GENIUS Act ban to merchant stablecoin rewards like cashbacks and loyalty points. Policy chief Faryar Shirzad urged the SEC and other regulators to follow the law’s text, warning that banning stablecoin rewards would hamper customer freedom and innovation. Coinbase highlighted that stablecoin payments could save US merchants over $180 billion in annual card fees, reinforcing its push to boost stablecoin payment adoption and secure clear regulation.
Bullish
Coinbase’s successful pushback against a proposed ban on stablecoin rewards boosts confidence in stablecoin payment adoption. By highlighting $180 billion in merchant fee savings and urging regulators to stick to existing law, the firm reduces regulatory uncertainty—an important driver of stablecoin demand. Short term, market sentiment may improve for major stablecoins like USDC as traders anticipate wider merchant use. Long term, clearer rules and cost benefits could support greater transaction volume and network growth, reinforcing a bullish outlook.