Coinbase says deal reached on key provision of crypto bill

Coinbase (COIN.O), opens new tab said on Friday a deal has been reached on a key provision in a landmark crypto legislation that could clear the ​path for the bill to move forward in the U.S. ‌Senate, News.Az reports, citing Reuters.

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The bill stalled earlier this year because banks opposed a provision allowing stablecoin issuers and crypto firms to offer yield-bearing products and other rewards paid on stablecoins that could ​lure away bank deposits, making it harder for them to ​fund lending.

Crypto giants such as Coinbase said they must be ⁠able to offer rewards to recruit customers and that barring them would ​be anticompetitive.

"In the end, the banks were able to get more restrictions ​on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of crypto platforms and networks," Coinbase's Chief Policy Officer Faryar ​Shirzad said in a post on X.

Punchbowl News, which reported the text ​of the compromise finalized by Senators Thom Tillis and Angela Alsobrooks, said the language ‌includes ⁠a broad prohibition on rewards offered "in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit".

The text also directs regulators to propose a new series of ​stablecoin regulations, including the ​development of ⁠a new stablecoin disclosure regime and a list of permissible reward activities, Punchbowl News added. Reuters could not immediately ​verify the report.

Crypto companies have been operating in a ​regulatory ⁠gray area, which executives say has stymied their businesses. The proposed Clarity Act aims to create clear regulations that should help promote cryptocurrency adoption.

President Donald ⁠Trump, who ​courted crypto cash on the campaign trail ​and whose family has profited from its own token, has prioritized crypto reform during his ​second administration.

News.Az 

By Faig Mahmudov