Getting Paid to Hold: Crypto Staking Rewards and the Banks Pushing Back

Holding crypto on a major exchange no longer has to mean sitting still. Coinbase and Kraken both pay rewards for staking proof-of-stake coins, and both pay rewards on dollar stablecoins that rival or beat many high-yield savings accounts. That second product has put the exchanges in a direct fight with the U.S. banking industry, a fight that dogged the CLARITY Act for months before the bill failed in the Senate last month [10] [15].

Staking: who pays the most

Below are the advertised rates for major proof-of-stake assets on the four largest U.S. exchanges, as listed on October 5, 2026 [1] [3]. Kraken offers two versions: flexible, which you can exit almost immediately, and bonded, which pays more but locks your coins for an unbonding period after you ask to withdraw [3] [6].

Advertised rates as listed on each exchange's site on Oct 5, 2026; green marks the highest rate for each asset. *Gemini quotes APR, which is slightly lower than the equivalent APY. Robinhood shows its estimated rates only inside its app. Rates are estimates that change with network conditions [1] [2] [3] [16] [17].

Cosmos is the standout on both platforms, at 12.89% on Coinbase and up to 19.15% bonded on Kraken. For the biggest names, Kraken's bonded staking pays more across the board: 2.72% on ETH versus 1.71% at Coinbase, and 6.88% on Solana versus 3.22% [1] [3]. Coinbase holds its own against Kraken's flexible option, beating it on Avalanche and Polkadot.

Beyond the majors, Kraken lists higher rates on smaller networks, including Secret (up to 20.14% bonded), Kusama (16.47%), Dymension (16.13%) and Flow (16.11%) [3]. Bitcoin, which is not proof-of-stake, earns next to nothing (0.02–0.04%).

How Gemini, Robinhood and BTCC compare

Stablecoin rewards: the product banks want gone

The rewards on dollar stablecoins are smaller at the U.S. majors, but they are what puts exchanges in competition with bank savings accounts. Among the four U.S. exchanges, the best standard rates require a paid membership.

As listed by each exchange. Eligibility varies by location and membership tier [4] [5].

The banks that want it shut down

The 2025 GENIUS Act already bars stablecoin issuers from paying interest. Banks argue the law has a loophole, because it does not stop exchanges and affiliates from paying rewards to holders instead. The Treasury Department has estimated that stablecoins could pull as much as $6.6 trillion out of bank deposits, depending on whether they can offer interest or yield [8]. Here is who has gone on the record.

Notably, staking has not been the main target. A May 2026 Senate compromise from Sens. Thom Tillis and Angela Alsobrooks would have banned rewards "economically or functionally equivalent" to interest on a bank deposit, while potentially allowing rewards tied to staking, validation and governance [12].

Crypto's counterargument

Coinbase argues that rewards tied to real activity are different from interest on idle deposits, and that the deposit-flight fears aren't supported by data. It points to community bank deposits growing 26%, about $482 billion, between June 2019 and March 2026, and to studies by Charles River Associates and the White House Council of Economic Advisers finding no significant link between stablecoins and deposit declines [14]. As Coinbase chief policy officer Faryar Shirzad put it, community banks' concerns "deserve to be taken seriously. But there's zero evidence that stablecoin rewards" drain deposits [14].

Where it stands now

On September 15, the CLARITY Act failed a key procedural vote in the Senate, winning just 49 votes, 11 short of the 60 needed [15]. The final sticking points were ethics provisions and midterm-election politics, after months in which the stablecoin-rewards dispute had dominated negotiations [13]. For now, that leaves the rewards described above in place under current law, with the next moves likely to come from regulators rather than Congress [15].

• Stablecoin rewards are the exposed product. If a future bill or rule closes the "loophole," these rates could shrink or disappear.
• Staking looks safer from regulation, but not risk-free. Bonded staking locks your coins, rewards are paid in a volatile asset, and your coins sit with the exchange.
• Compare after the headline. Account for lockups, membership fees, token inflation and taxes. In the U.S., staking rewards are generally taxed as income when you receive them.