Coinbase Fights Bank Bid to Halt Stablecoin Payment Perks

Coinbase Opposes Bank Effort to Block Stablecoin Payment Benefits

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 14, 2025

Key Takeaways

Coinbase rejected bank calls to ban stablecoin payment perks by saying regulators should rely on the GENIUS Act’s exact wording;
Banks argued rewards tied to stablecoin purchases count as “indirect interest,” and want the law applied to businesses linked to issuers;
Coinbase says stablecoin payments could cut over $180 billion in card fees and offer merchants a cheaper alternative to traditional methods.

Stop overpaying - start transferring money with Ogvio. Join the waitlist & grab early Rewards NOW! 🎁

BITDEGREE IN YOUR SOCIAL FEED

Coinbase $4.16B has pushed back against several US banking groups after they urged regulators to block rewards and discounts tied to stablecoin payments.

These banking groups want rules that would stop stores and service providers from offering cashbacks, loyalty points, or price reductions when customers pay with stablecoins.

The disagreement centers on the GENIUS Act. This law prevents companies that issue stablecoins from offering interest or similar returns to holders of those tokens.

How Do KYC & AML Work in Crypto? (Explained)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Banking groups argued that these perks still count as an "indirect interest". Their position is that if a business benefits from its link to a stablecoin issuer, then the ban should apply to that business as well.

In response, the company’s policy chief, Faryar Shirzad, said in a post on X that regulators should follow the law's exact wording. He wrote:

There is something unamerican about bank lobbyists pressing regulators to tell stablecoin customers what they can and cannot do with their own money after it is issued.

Coinbase also said that stablecoins could help reduce the more than $180 billion that US businesses paid in card fees in 2024. The company noted that stablecoin payment options could give merchants a less costly alternative.

Coinbase recently addressed comments by Senator Chris Murphy, who raised concerns about the company's financial support for a White House project and for political groups linked to President Donald Trump. What did Shirzad say? Read the full story.