Coinbase (NASDAQ:COIN) has warned U.S. lawmakers it could withdraw support for a major crypto market-structure bill if new provisions restrict its ability to offer rewards on stablecoin holdings.

What Happened: The bill is headed for Senate committee markup this week, but proposed changes would limit stablecoin rewards to regulated banks or trust-chartered institutions.

Bloomberg reported on Monday the push is backed by the banking lobby and opposed by crypto-native firms.

Stablecoin rewards are a key revenue source for Coinbase, largely tied to interest earned on USDC (CRYPTO: USDC) reserves shared with Circle (NYSE:CRCL).

Coinbase generated about $1.3 billion in stablecoin-related…

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