Coinbase faces a multibillion-dollar threat from D.C. but a 'rewards' loophole could protect its stablecoin revenue

The proposed rules could ban yield on stablecoins like USDC, though analysts say the exchange may adapt. What to know : A proposed CLARITY Act in Congress could restrict stablecoin issuers from paying interest directly to holders, potentially limiting one way Coinbase encourages customers to keep digital dollars on its platform. Loopholes in the bill’s current language may still allow exchanges like Coinbase to offer yield-like rewards through marketing incentives, activity-based payments or partnerships with issuers, blurring the line between interest and rewards. Analysts say stablecoin incentives are strategically important but not existential for Coinbase, whose main revenue still comes from transactions, and expect the company and broader industry to adapt even if strict limits on yield are enacted.