Coinbase Opposes Bank Restrictions on Stablecoin Merchant Rewards

Coinbase has challenged banking industry attempts to limit merchant rewards for stablecoin users, arguing that such restrictions violate the interpretation of the GENIUS Act. The company believes these incentives are not comparable to interest payments, which are specifically targeted by the act’s prohibition. This dispute centers on how the GENIUS Act applies to stablecoin activity as banks attempt to curb the growth of stablecoins in payments while exchanges push back against what they view as an overreaching interpretation of the law.