Coinbase-Circle Stablecoin Deal Faces Rewrite Under GENIUS Act

VanEck's Matthew Sigel has revealed that Coinbase was already anticipating adjustments to its agreement with Circle under the GENIUS Act. This comes as no surprise, given that the law effectively codifies provisions that were already embedded in it.

The revenue-sharing deal between Coinbase and Circle is set to expire later this year, and the new rules would require them to redraw their agreement. According to Sigel, the deal currently looks more like a loyalty program than interest on deposits.

The GENIUS Act's proposed guidance has sparked panic in the crypto industry, with some fearing that it will limit the ability of stablecoin issuers to offer rewards to customers. However, VanEck argues that this was already anticipated and will not have a significant impact on the market.