--- title: "Coinbase Stock (COIN) in Focus as Stablecoin Rewards Face Senate Scrutiny" description: "Coinbase Global (COIN) is closely monitoring a significant crypto bill under Senate review that may impose limits on rewards for stablecoin holdings, which are crucial to its business model. The compa" type: "news" locale: "en" url: "https://longbridge.com/en/news/272212392.md" published_at: "2026-01-12T03:29:31.000Z" --- # Coinbase Stock (COIN) in Focus as Stablecoin Rewards Face Senate Scrutiny > Coinbase Global (COIN) is closely monitoring a significant crypto bill under Senate review that may impose limits on rewards for stablecoin holdings, which are crucial to its business model. The company may withdraw support for the bill if strict regulations are included. Lawmakers are divided, with banks favoring restrictions to protect traditional deposits, while crypto firms like Coinbase argue it would hinder competition. Stablecoin rewards are a vital revenue source for Coinbase, projected to reach $1.3 billion by 2025. Wall Street rates COIN stock as a Moderate Buy with a target price of $361.63, suggesting a 50.19% upside. Coinbase Global (COIN), the largest crypto exchange in the U.S., is monitoring a major crypto bill as it approaches Senate review, according to a *Bloomberg* report. ### Claim 70% Off TipRanks Premium - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential At the center of the debate is whether crypto platforms should be allowed to continue offering rewards on stablecoin holdings. Coinbase views those rewards as a core part of its platform and is concerned that new limits under discussion could disrupt that model. Reportedly, Coinbase may reconsider its support for the bill if the final **verdict** includes strict limits on rewards. The legislation is expected to face markup in at least one Senate committee this week. However, Coinbase has not issued any public response yet. ## **Banks and Crypto Firms Take Opposite Sides** Some lawmakers are considering rules that would allow only banks or licensed financial firms to offer stablecoin rewards. Banks support this idea, saying that rewards could pull deposits out of the traditional banking system and reduce lending. Crypto firms, including Coinbase, oppose the move. They argue that restricting rewards to banks would give traditional lenders an unfair edge and make it harder for crypto platforms to compete. ## **Stablecoin Rewards Drive a Key Revenue Stream** Stablecoin rewards are a meaningful income source for Coinbase. The company earns interest from reserves backing USDC, a dollar-linked stablecoin issued by **Circle** (CRCL). When users hold USDC on Coinbase, that interest provides steady income, even when trading slows. To support those balances, Coinbase offers rewards of about 3.5% on certain USDC holdings. If new rules curb those incentives, users may move stablecoins elsewhere. That could pressure results. Stablecoin-related revenue is expected to reach about $1.3 billion in 2025, based on *Bloomberg* data, making it an important part of Coinbase's business. ## **Is COIN Stock a Buy, Sell, or Hold?** Overall, Wall Street has a Moderate Buy consensus rating on Coinbase Global stock based on 17 Buys, seven Holds, and one Sell recommendation. The average COIN stock price target of $361.63 indicates 50.19% upside potential. ### Related Stocks - [COIN.US - Coinbase](https://longbridge.com/en/quote/COIN.US.md) - [CONL.US - GraniteShares 2x Long COIN Daily ETF](https://longbridge.com/en/quote/CONL.US.md) - [07311.HK - XI2CSOPCOIN](https://longbridge.com/en/quote/07311.HK.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Coinbase Global says that some users may be experiencing delayed sends & receives for Algorand (Algo) - website | Coinbase Global says that some users may be experiencing delayed sends & receives for Algorand (Algo) - website | [Link](https://longbridge.com/en/news/275504513.md) | | Coinbase Global Says That Some Users May Be Experiencing Delayed Sends & Receives For Algorand (Algo) - Website | Coinbase Global Inc :COINBASE GLOBAL: AWARE THAT SOME USERS MAY BE EXPERIENCING DELAYED SENDS & RECEIVES FOR ALGORAND (A | [Link](https://longbridge.com/en/news/275501088.md) | | BREAKINGVIEWS-Why US banks' stablecoin pleading is flawed | US banks, led by Bank of America, are expressing concerns over stablecoins potentially attracting $6 trillion in deposit | [Link](https://longbridge.com/en/news/275851247.md) | | Key facts: Coinbase forecasts $550-$630M Q1 2026 revenue; withdraws stablecoin support | Coinbase Global (COIN) expects Q1 2026 subscription and services revenue of $550-$630 million, with transaction revenue | [Link](https://longbridge.com/en/news/276012155.md) | | Commerce chief Lutnick admits to visiting Epstein Island during Senate grilling | Secretary of Commerce Howard Lutnick admitted during Senate testimony that he visited Jeffrey Epstein's island in Decemb | [Link](https://longbridge.com/en/news/275490907.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.