TechFlow news — On January 12, according to Coindesk, Coinbase is pressuring lawmakers to preserve its stablecoin rewards program, warning it may withdraw support for the cryptocurrency market structure bill (CLARITY Act) otherwise. Banks oppose the rewards program, arguing it would drain deposits from the traditional financial system and harm lending activities. Coinbase Chief Policy Officer Faryar Shirzad stated that Cornell University research shows stablecoin adoption does not reduce bank lending, and that the rewards program is a necessary tool to compete with bank fees.
Some lawmakers are considering a compromise that would allow only institutions holding bank charters to offer such rewards. Currently, Coinbase offers users a 3.5% reward on holdings of USDC through its Coinbase One subscription service.
