Key Highlights
The U.S. Senate is preparing to vote on a crypto bill that will decide how crypto, stablecoins, and DeFi work in the U.S.
There is a debate over stablecoin rewards, with Coinbase’s official saying rewards help users and banning them could hurt innovation and the U.S. dollar.
The outcome could define how crypto companies compete with banks and how people use digital money.
The U.S. Senate is preparing to advance a crypto market structure bill that will set rules for cryptocurrencies, including stablecoins and decentralized finance (DeFi), with a markup scheduled for January 15, 2026.
Discussions are taking place in the Senate Banking Committee in Washington, D.C., and aim to define how digital assets are classified and how crypto companies operate alongside banks.
Senators from both parties are negotiating on key points, like whether crypto companies can offer stablecoin rewards and if they should prevent government officials from making money from digital assets.
Why stablecoin rewards are at center of debate
In a post on X on Wednesday, Coinbase Chief Policy Officer Faryar Shirzad highlighted the stakes. He said that the GENIUS Act, which Congress passed previously, already addressed stablecoin rewards. Reopening the discussion now, he said, “only creates uncertainty and risks the future of the U.S. Dollar as commerce moves onchain.”
He continued that allowing stablecoin rewards benefits consumers directly by giving them lower costs and better competition in the payments system. According to him, stablecoin rewards do not harm community banks but instead help everyday Americans by encouraging financial services that are fair and accessible. He said that if Congress blocks these rewards, it could slow innovation and allow other countries, like China, to gain an advantage in digital currencies.
Lawmakers push competing visions for crypto rules
Senate Republicans, led by Chair Tim Scott (R-S.C.) and senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno, have sent Democrats a “closing offer” with over 30 proposed revisions to Title I of the bill, which governs the legal classification of digital assets.
The proposal includes new titles focused on investor protections and combating illicit finance. Senator John Kennedy (R-La.) said the committee is targeting January 15 for a markup but would likely release an updated draft beforehand.
Democratic negotiators are pressing for ethics rules to prevent government officials from profiting from crypto, including guarantees for leadership roles at the SEC and CFTC, and limits on crypto yield that could compete with banks.
What the bill could mean for crypto space
The House of Representatives has already passed its Digital Asset Market Clarity Act, which adds pressure on the Senate to act. There is also a January 30 federal spending deadline to prevent a government shutdown.
If stablecoin rewards are allowed, crypto companies can compete with banks and potentially offer better services, which could attract more users. However, blocking rewards could limit innovation and slow growth in the industry while giving traditional banks an advantage. The bill will also set clear rules for DeFi platforms.
In short, the outcome of this bill will decide whether crypto companies can continue offering stablecoin rewards and clarify how crypto and banks would compete in the industry.
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