Coinbase chief executive Brian Armstrong said a proposed ban on stablecoin rewards under the CLARITY Act would ironically make the exchange more profitable.
The dispute centres on draft provisions that would allow users to earn rewards for using stablecoins as payment instruments but restrict rewards for simply holding them, a shift that has drawn opposition from parts of the crypto industry.
“Ironically, if a crypto rewards ban went into law, it would make us more profitable since we payout large amounts in rewards to our customers holding USDC,”
Armstrong wrote on social media.
Armstrong added that while Coinbase would financially benefit in the short term, it was “better for customers to get rewards, and it’s better for the U.S. to keep regulated stablecoins competitive on a global stage.”
Critics, including market commentator Joe Saluzzi, argued that rewards programmes attract customers and trading activity, generating additional revenue through transaction and market data fees despite the upfront payout costs.
Armstrong acknowledged that Coinbase benefits from overall industry growth, stating the company was not a charity and highlighting the distinction between short-term profitability and long-term ecosystem expansion.
The debate has stalled progress on the CLARITY bill as banks and crypto firms remain divided over stablecoin incentives, leaving the legislation’s final form uncertain.