Coinbase Blocks Stablecoin Compromise in Senate Bill

Coinbase has reignited the standoff over stablecoins in the US Senate by opposing the latest compromise version of the crypto market structure bill.

The disagreement centers around who can pay yield on stablecoins, with banks fearing a gradual migration of savings out of the traditional banking system.

For Coinbase, the prohibition on exchanges redistributing yield would change everything. Yield on stablecoins is not just a marketing bonus but a pillar of the crypto business model, allowing competition with traditional savings accounts and attracting liquidity.