Stablecoin Rewards: A Fight for Crypto's Future

A big fight is happening in the U. S. over stablecoin rewards. Coinbase, a major crypto company, is pushing back against new rules that could hurt its business. The issue is about who can offer rewards on stablecoins like USDC. Coinbase makes a lot of money from these rewards. But banks want to change the rules so only they can offer them. This fight is making it harder for a big crypto bill to pass. The bill is supposed to set rules for the crypto market. But banks and crypto companies can't agree on stablecoin rewards. This is slowing things down. If the bill doesn't pass soon, it might get stuck because of politics.Coinbase warns that new rules could cut its earnings. It made about $1. 3 billion from stablecoin rewards last year. If the rules change, people might move their USDC to other places. This could hurt Coinbase's profits. The fight is also about competition. Crypto companies say the new rules would make it harder for them to compete. Banks want to close a loophole that lets exchanges offer rewards. Crypto firms argue this would weaken the dollar's global position. Analysts say time is running out. The bill needs to pass by the second quarter of this year. If not, it might get delayed because of elections. Even if a pro-crypto president like Trump wins, the bill could still stall.