Coinbase May Withdraw Support from CLARITY Act

Coinbase might pull support from the CLARITY Act, concerned about restrictions on stablecoin yields. The bill, critical to the crypto market structure, is currently under Senate Banking Committee review.

Coinbase, a leading U.S. crypto exchange, reportedly deliberates withdrawing backing for the bill if it imposes firm restrictions beyond required disclosures. The CLARITY Act, pivotal for governing market operations, could reshape stablecoin transactions.

The proposed legislation could challenge Coinbase’s stablecoin revenue generation, with $247M from stablecoins in Q4 2025. Potential restrictions could alter how users interact with stablecoins and affect market dynamics significantly.

Opponents warn restrictions could undermine U.S. crypto industry competitiveness. Past similar policies reduced bank deposits, breaking established norms. The community continues to engage, sending over 100,000 messages opposing restrictive measures.

“Reopening the debate on stablecoin yields would inject uncertainty into crypto policy, especially as stablecoin adoption is ramping up globally.” – Faryar Shirzad, Chief Policy Officer, Coinbase Bloomberg

This situation echoes the GENIUS Act, which faced delays due to its regulatory stance. Observers note a similar “loophole” controversy impacted prior legislation, highlighting the difficulty in achieving industry balance.

With past issues like the GENIUS Act as a backdrop, authorities and industry leaders like Mike Novogratz emphasize that restricting stablecoin rewards weakens U.S. innovation, potentially slowing the crypto sector’s growth.

“Rolling back elements of the GENIUS Act, like stablecoin yields, would weaken U.S. innovation and competitiveness.” – Mike Novogratz, CEO, Galaxy Digital Bloomberg