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Ban on rewards tied to stablecoin payments is un-American: Coinbase

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 34 Views

Coinbase Institute has criticized banking groups for asking regulators to prevent merchant rewards for stablecoin customers, arguing the request has no merit under the GENIUS Act.

Crypto exchange Coinbase has slammed US banking groups for asking regulators to ban merchant rewards, cashbacks and discounts offered to customers who pay with stablecoins, calling the request “unamerican.”

The clash relates to the statutory language of the GENIUS Act, which prohibits stablecoin issuers from offering interest or yield to holders of the token, but it does not explicitly extend the ban to crypto exchanges or affiliated businesses.

The banking groups claim an “indirect interest” arises when a third-party financially benefits and has a connection to the stablecoin issuer. Coinbase chief policy officer Faryar Shirzad, however, strongly opposed that view in a post to X on Thursday and called on regulators to “stick to the statutory text.”

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