Coinbase Expands USDC Rewards to 3.75% Amid Clarity Act Rejection

Coinbase has raised the interest rate on USDC rewards for its paid membership service, Coinbase One, to 3.75%, effective immediately after the U.S. Senate failed to advance the Clarity Act.

The move comes as regulatory discussions around stablecoin rewards continue. The Clarity Act, which aims to clarify cryptocurrency regulations in the U.S., included provisions restricting rewards offered by stablecoin issuers and related services.

Coinbase One members must hold at least $1 worth of USDC to qualify for the rewards, which are calculated daily based on balance. The service offers fee discounts and other exclusive benefits for monthly or annual subscribers.

The timing of the rate increase has drawn attention, as the Senate voted 49-50 against advancing the Clarity Act's consideration, falling short of the required 60 votes. Banking interests have pushed for stricter regulation on stablecoin rewards, arguing they compete with traditional deposits, while crypto industry advocates warn that restrictions could reduce service competitiveness.

Some analysts view Coinbase's decision as a subtle message to banking sector concerns, though the company has not explicitly linked the move to the Clarity Act outcome. The Senate vote saw Democratic opposition and four Republicans defecting, including Senators Josh Hawley and Jerry Moran, who reportedly considered bank industry demands on stablecoin rewards.

The Clarity Act's failure leaves regulatory discussions on stablecoin rewards uncertain, with future negotiations likely to balance banking sector requirements against crypto industry interests. Coinbase may see the expanded USDC rewards as a strategy to attract paid members and increase stablecoin usage, positioning itself ahead of potential future regulatory debates.