Coinbase and other digital asset companies receive "get-out-of-jail-free card"? Crypto market structure bill allows for specific stablecoin rewards.

According to a highly anticipated cryptocurrency market structure bill, many digital asset companies like Goldman Sachs Group, Inc. seem to still be able to offer rewards to clients holding stablecoins. The US Senate Banking Committee released a bipartisan amendment on Monday night in preparation for a hearing scheduled for Thursday. The wording of the amendment seems to aim at prohibiting cryptocurrency exchanges from providing rewards related to holding stablecoins, but it also specifies certain activities that may be exempt from this restriction, including specific rewards related to loyalty or incentive program membership. This wording may be welcomed by companies like Coinbase (COIN.US), which currently offers stablecoin holding rewards to its customers. It is reported that the largest US cryptocurrency exchange, Coinbase, is increasing its lobbying efforts with US lawmakers in an attempt to retain its business model of offering rewards to stablecoin holders in the upcoming cryptocurrency market structure bill that is entering the Senate deliberation phase. Sources say that if the bill introduces restrictions on reward mechanisms beyond disclosure requirements, Coinbase may reconsider its support for the bill. It is reported that Coinbase uses the US dollar stablecoin (USDC) held by users on the platform to earn interest, and then distributes a portion of the interest to users as "rewards." Banks are concerned that this is equivalent to "high-interest deposits," without being subject to requirements such as reserve requirements and FDIC insurance, and they are also concerned that this practice may divert traditional bank deposits. Therefore, if the cryptocurrency market structure bill defines this as a "deposit" or prohibits third-party interest payments, Coinbase's stablecoin interest income could be cut off. In response, Coinbase insists that this is simply a "marketing reward," not "deposit interest." The US Senate to deliberate on cryptocurrency market structure bill this week The US Senate Banking Committee and Agriculture Committee are planning to hold a revision hearing on the cryptocurrency market structure bill on Thursday of this week. These two committees will each prepare a new version of the bill. The committees will discuss and modify the details of the bill at the revision hearing. Before the Senate Banking Committee announced the latest amendment, the Senate Agriculture Committee had already released a bipartisan legislative draft of its version of the bill. In this draft, Agriculture Committee Chairman John Boozman and Democratic Senator Cory Booker temporarily removed key sections on decentralized finance (DeFi) and anti-money laundering, as both parties are still negotiating the details. It is reported that the cryptocurrency market structure bill was passed by the US House of Representatives in July last year. The bill defines "digital commodities" as digital assets whose value is "intrinsically linked to the use of blockchain." This definition excludes securities, derivatives, and stablecoins. The bill clarifies the division of responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in cryptocurrency regulation, and outlines the registration and compliance standards that entities in the crypto space must follow. Senate Banking Committee Chairman Tim Scott stated, The core goal of this bill is to make the US a global center for the cryptocurrency industrycreating employment opportunities and fostering innovation domestically, rather than seeing them go overseas. When we establish clear regulatory rules, we can inject confidence into entrepreneurs, driving them to start businesses, employ workers, and grow right here in the US. Alex Thorn, Director of Research at Galaxy Research, said that the discussion about whether to include decentralized finance (DeFi) in anti-money laundering rules could be the most far-reaching issue. He pointed out that other subjects still under negotiation include how stablecoin reserve earnings are handled, protection for non-custodial developers, and SEC authorization or restriction on token issuance. He added, If a bipartisan cryptocurrency market structure legislation that clarifies token classification, defines regulatory jurisdiction, and protects developers and non-custodial protocols can be passed, this will be a significant bullish catalyst for cryptocurrency adoption. However, investment bank TD Cowen stated that while there is room for progress in cryptocurrency market structure legislation this year, it is more likely to be delayed until 2027 and the final rules may not take effect until 2029. The bank said that the main obstacle comes from disputes over conflict of interest clauses: Democrats are pushing to restrict high-ranking officials (including former President Trump) and their families from holding or operating cryptocurrency businesses. To facilitate the passage of the bill, this clause may be delayed for about 3 years to avoid it applying to Trump.