Previously, Coinbase partnered with Circle, the issuer of the dollar-based stablecoin USDC, to offer annual rewards of around 3% to users holding USDC, boosting USDC adoption.
If the Senate’s amendment is enacted as written, the two companies’ business structures would need to be changed.
In line with analyses that the legislation’s direction favors traditional finance, Coinbase and Circle’s stock prices fell sharply, and concerns spread to other countries that are aligning discussions with the U.S. legislative momentum.
Coinbase and Circle have been operating a USDC rewards program that pays annual rewards in the 3% range, aiming to boost stablecoin adoption.
If the Senate amendment is enacted as written, both firms will likely need to modify their business structures to stay compliant.
Market reactions reflected this uncertainty as investors and traders recalibrated expectations for crypto-related services.
Analysts say the proposed changes tilt the playing field toward traditional finance, heightening the risk of required structural adjustments for Coinbase and Circle.
The direction of the bill has raised concerns that broader regulatory constraints could limit how crypto firms design and market rewards.
Some stakeholders fear this could slow cross-border discussions and affect global operations.
Ultimately, the outcome could reshape the pace of stablecoin adoption and the trajectory of crypto incentives in both the United States and abroad.
Firms are likely to pursue tighter compliance and clearer governance to navigate evolving rules, while markets monitor policy momentum.
Leave a Reply