Ripple, Coinbase Defend GENIUS Act Stablecoin Rewards Access

• Crypto groups urge Congress not to reopen GENIUS Act stablecoin provisions.
• Industry says platform rewards do not harm banks or cause deposit outflows.
• Over 125 firms, including Coinbase and Stripe, signed the policy letter.

More than 125 cryptocurrency companies, investors and trade groups have urged U.S. lawmakers not to reopen a provision of proposed stablecoin legislation, warning that changes could reduce consumer choice and slow innovation.

The Blockchain Association and dozens of signatories including Ripple, Coinbase, and Stripe, addressed a Dec. 18 letter to Senate Banking Committee Chair Tim Scott and Ranking Member Elizabeth Warren saying efforts to reinterpret the GENIUS Act would go beyond what Congress originally approved.

Industry Warns Against Reopening Settled Compromise

The GENIUS Act bars stablecoin issuers from paying interest or yield directly to token holders, but allows platforms and intermediaries to offer lawful rewards or incentives. The letter argues that this distinction was intentional and the result of careful negotiation.

Industry groups said proposals to further restrict rewards offered by platforms would reintroduce uncertainty into the market and could favor large financial institutions over newer technology firms.

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No Evidence of Harm to Banks, Groups Say

“There is no evidence these programs harm community banks,” the Blockchain Association said in a social media post accompanying the letter. It added that there was also no data showing stablecoins have caused bank deposit outflows.

The group said incentives are common in competitive payments markets and warned that removing them could entrench existing financial players while limiting competition from newer payment technologies.

Several crypto and fintech firms signed the letter, including Coinbase, Injective,

Algorand, Stripe, PayPal, Ripple, Kraken, Gemini and a16z Crypto, along with policy organizations and state-level crypto advocacy groups.

Some signatories said stablecoin rewards are already permitted under existing law and help promote competition and innovation in digital payments.

Calls to Preserve GENIUS Act as Written

The letter cited the current interest rate environment, explaining that traditional checking and savings accounts offer minimal returns. It argued that stablecoin reward programs allow platforms to pass value back to users at a time when households face rising living costs.

Tyler Winklevoss, co-founder of crypto exchange Gemini, said in a separate statement that some banking interests were pushing to block platforms from offering stablecoin rewards.

He said the issue had already been settled in the GENIUS Act and warned that changing the rule would hurt innovation and U.S. competitiveness.

The Blockchain Association said preserving the legislation as written was essential for consumer choice, competition and long-term regulatory clarity.

Lawmakers have not publicly said whether they plan to revise the provision.

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