May 1 (Reuters) – Coinbase said on Friday a deal has been reached on a key provision in a landmark crypto legislation that could ‌clear the path for the bill to move forward in the U.S. ‌Senate.

• The bill stalled earlier this year because banks opposed a provision allowing stablecoin issuers and ​crypto firms to offer yield-bearing products and other rewards paid on stablecoins that could lure away bank deposits, making it harder for them to fund lending.

• Crypto giants such as Coinbase said they must be able to offer rewards ‌to recruit customers and that ⁠barring them would be anticompetitive.

• “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,” Coinbase’s Chief Policy Officer Faryar Shirzad said in a ​post on ​X.

• Punchbowl News, which reported the ​text of the compromise finalized by ‌Senators Thom Tillis and Angela Alsobrooks, said the language 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 text also directs regulators to propose a new series of stablecoin regulations, including the ‌development of a new stablecoin disclosure regime ​and a list of permissible reward activities, Punchbowl ​News added. Reuters could not ​immediately verify the report.

• Crypto companies have been operating in ‌a regulatory gray area, which executives ​say has stymied ​their businesses. The proposed Clarity Act aims to create clear regulations that should help promote cryptocurrency adoption.

• President Donald Trump, who courted crypto cash ​on the campaign trail ‌and whose family has profited from its own token, has prioritized ​crypto reform during his second administration.

(Reporting by Natalia Bueno Rebolledo in ​Mexico City; Editing by William Mallard)