$Coinbase(COIN.US) reminds Coin holders to pay attention to this Thursday's crypto regulatory legislation review. The current focus of the game is on "stablecoin interest." Although the Genius Act was passed in 2025, banking lobbyists are demanding that this market structure bill close the "stablecoin interest" loophole.

According to Coinbase's revenue structure, under the high-interest environment of the past two years, stablecoin interest payments have become Coinbase's highest-quality profit source. Circle issues USDC, and the underlying assets (such as U.S. Treasuries) generate approximately 4-5% risk-free returns. Circle, per the agreement, shares the majority of these returns with Coinbase (as consideration for liquidity provision). Coinbase then distributes a portion of this as "Rewards" (paid by Coinbase as incentives, not interest from the issuer) to users to retain funds.

Banking lobbyists are leveraging the follow-up details of the GENIUS Act to try to close this "loophole." They argue: "If issuers cannot pay interest, then trading platforms should not be allowed to pay interest indirectly either." The banks' logic is that "only banks can take deposits and pay interest" because banks are subject to FDIC insurance and stringent capital regulations.

Coinbase reacted fiercely, even threatening to no longer support the bill, as once the bill strictly prohibits platforms from paying interest, Coinbase would be reduced to a mere "channel," losing its ability to profit from financial asset deposits.