A proposed compromise on the US crypto market structure bill is drawing mixed reactions across the industry, exposing divisions over stablecoin yield rules.
Coinbase has expressed dissatisfaction with the latest language around yield and rewards, though it has not formally opposed the proposal as negotiations continue.
“It’s all going to work out,”
Said White House crypto adviser Patrick Witt, responding to concerns around the bill’s progress.
The revised proposal would task regulators with defining how stablecoin rewards are governed, raising concerns about subjective rulemaking and potential limits on incentive programmes.
Some industry participants worry the changes could restrict business models tied to transaction-based rewards, similar to credit card-style incentives.
Tensions emerged during industry discussions, with Coinbase clashing with other stakeholders over whether to prioritise favourable terms or broader regulatory clarity.
The debate has already impacted markets, contributing to volatility in Circle and Coinbase shares, as investors assess how new rules could reshape stablecoin economics.