U.S. Nears Stablecoin Rules as $1.35 Billion Coinbase Revenue Sharpens Dollar-Yuan Rivalry
Updated
Updated · The Japan Times · May 28
U.S. Nears Stablecoin Rules as $1.35 Billion Coinbase Revenue Sharpens Dollar-Yuan Rivalry
1 articles · Updated · The Japan Times · May 28
A U.S. compromise on stablecoin rewards is coming into view, potentially clearing a key obstacle to wider use of private 1:1 dollar tokens.
The dispute centered on last year’s Genius Act, which bars issuers from sharing reserve income with users, while banks sought to also ban third-party rewards and crypto firms said that would choke innovation.
Coinbase’s stake is significant: nearly one-fifth of its revenue last year—$1.35 billion—came from stablecoins, largely through its partnership with Circle, and it paid customers hundreds of millions in USDC rewards.
Once regulated, those digital dollars could spread rapidly in emerging markets, raising the strategic contest with China as Beijing pushes the digital yuan where dollarization risk is highest.
With the U.S. legitimizing 'dollar clones,' can rival digital currencies from China or Europe truly compete?
Beyond the bank versus crypto feud, who will ultimately win the right to create and control money in the digital age?