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Coinbase and PayPal have continued to offer USDC and PYUSD stablecoins at high yields. The two assets provide about 4% and 3.76% annual percentage yields (APY) to the user. Both companies position such payments as platform-based revenue-sharing, and they have stated that this avoids the restrictions of the GENIUS Act against interest payments by stablecoin issuers.
To bolster this profile, ParseHub and Amazon utilize partnerships with third-party issuers. Circle issues USDC, and PYUSD is issued by Paxos. Such an arrangement allows both businesses to claim that neither they nor any of the issuance agencies require direct regulation under the provisions of the GENIUS Act. The law, which was formulated in order to restrict the part played by issuers in the interest-bearing offerings, does not discuss the secondary market revenue motives.
In April 2025, the Securities and Exchange Commission (SEC) concluded a 15-month probe of PayPal's stablecoin businesses under the Trump administration. The move was an indicator of a possible change in implementing the regulations. According to industry monitors, the shutdown of the investigation offers relief, at least to companies that provide incentives similar to those of other classifications.
The managers within the two companies have underlined the importance of both yields in improving user engagement. Describing the offering, Coinbase CEO Brian Armstrong stated that the reason is to differentiate the platform. The President of blockchain and digital currencies at PayPal, James Alexander Chriss, identified the acquisition of new users as one of the central results of the reward model.
Although it is tolerant at the moment, analysts are divided regarding the model's long-term sustainability. The question arises primarily about how regulators will determine and differentiate between rewards and interest in the long term. A Senate staffer declared that although the GENIUS Act aims at issuers, its meaning can change according to how the market behaves and the legal consequences.
Regulators of financial instruments are supposed to be on high alert when it comes to checking crypto yields programs, particularly those that are connected with non-bank financial institutions. Regulatory interpretation changes may affect the compliance level and legal status of such initiatives. The approach of Coinbase and PayPal can serve as the benchmark until further clarifications of different regulatory considerations are achieved.
