Coinbase Opposes Updated Clarity Act Over Stablecoin Yield Restrictions

Coinbase, the largest crypto exchange in the U.S., has again declined to support the latest draft of the Clarity Act. The company cited concerns over provisions that would prevent crypto platforms from paying rewards on stablecoin holdings and restrict access to transaction size data, complicating reward calculations. The bill is led by Senators Thom Tillis and Angela Alsobrooks and aims to address banking concerns over deposit flows.

Coinbase Revenue at Stake

Stablecoin yield is a major revenue stream for Coinbase. In 2025, the exchange reported $1.35 billion in stablecoin revenue, primarily from USDC distribution payments through its partnership with Circle. Limiting these rewards could remove a significant portion of earnings and impact overall business operations.

 Patrick Witt, the White House’s crypto adviser said on X;

Legislative Negotiations Continue

Discussions around the Clarity Act remain ongoing. The White House has hosted closed door meetings to mediate between crypto firms and banks. Senator Cynthia Lummis emphasized the need for a bipartisan compromise to protect stablecoin rewards while preventing deposits from leaving community banks. Coinbase’s stock closed at $181.10, up slightly, though down 41% over six months, reflecting investor caution amid the regulatory uncertainty.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.