GENIUS Act Bars Stablecoin Interest, but Coinbase Still Pays 3.75% on USDC

The GENIUS Act's ban on issuer-paid interest leaves a gap that exchanges are testing: Coinbase's 3.75% USDC reward is paid by the exchange, not Circle, which may sit outside the letter of the prohibition. That distinction matters because it determines whether the law reshapes stablecoin economics or simply pushes yield distribution into intermediary channels. The open question is how regulators and courts treat exchange-funded rewards that functionally mimic interest, since that reading will shape how much yield stablecoin holders can still capture.