Circle Internet Group (Derivatives) (CRCL)

For Circle and Coinbase, this should be a positive development. Previously, Circle gave Treasury bond interest to Coinbase, which then passed it directly to users; that model may need to change, but the channel remains—using activity incentives, trading incentives, or incentives on the Base chain are all feasible.

Earned interest on balances also has room for change; as long as it passes the “equivalence test” (proving it is not akin to bank interest), balances can also serve as a basis for earnings calculation.

As the Coinbase CPO said, “We have protected rewards based on real usage.” The biggest upside is the regulatory certainty, which provides a foundation and protection for additional growth.

Additionally, regulators will issue specific rules within a year, providing a list of “allowed activities.” From a crypto perspective, this is an acceptable outcome.