The Stablecoin Interest Ban Doesn't Cover Coinbase

Business Onion · 2:58

In July 2025, Congress banned stablecoin issuers from paying you interest. That same year, Coinbase paid its customers $441 million in rewards on USDC — because the ban names only the issuer. A Senate bill would have reached exchanges too. Among other changes, the banks asked the Senate to delete one word from it: "solely." On 15 September 2026 that bill failed to get the 60 votes it needed to start debate. Part 4, the final part of THE STABLECOIN WARS. NUMBERS & SOURCES • GENIUS Act, signed 18 Jul 2025. SEC. 4(a)(11): no permitted payment stablecoin issuer "shall pay the holder of any payment stablecoin any form of interest or yield … solely in connection with the holding, use, or retention of such payment stablecoin." The ban takes effect on the earlier of 18 Jan 2027 or 120 days after final regulations (SEC. 20).