Coinbase Global Inc. announced on Friday that a critical agreement has been reached on a key provision within landmark US cryptocurrency legislation, potentially clearing the path for the bill to advance in the U.S. Senate. The legislation, which had stalled earlier in the year, faced significant opposition from traditional banks regarding a provision that would have allowed stablecoin issuers and crypto firms to offer yield-bearing products. Banks argued that such reward schemes could divert crucial deposits, thereby making it more challenging for them to fund their lending operations. In contrast, major crypto entities, including Coinbase, asserted that the ability to offer rewards is essential for customer acquisition and that a prohibition would be anticompetitive. Faryar Shirzad, Coinbase's Chief Policy Officer, stated via a post on X, "In the end, the banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of crypto platforms and networks." According to reports from Punchbowl News citing Senators Thom Tillis and Angela Alsobrooks, the compromise includes a broad prohibition on rewards offered "in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit." The reported compromise also directs regulators to propose a new series of stablecoin regulations, encompassing a new disclosure regime and a defined list of permissible reward activities. Reuters noted it could not immediately verify this report. Crypto companies have long operated within a regulatory grey area in the U.S., a situation executives contend has hindered their growth. The proposed Clarity Act aims to establish clear regulatory frameworks, which industry stakeholders hope will foster greater cryptocurrency adoption. Former President Donald Trump, who has actively courted crypto support, has also reportedly prioritized crypto reform during his second administration.