Cryptocurrency exchange Coinbase announced that it will not support the final version of the Digital Asset Market Clarity Act (Clarity Act), which is on the agenda in the US Senate. The new draft law, spearheaded by Senators Thom Tillis and Angela Alsobrooks, was prepared specifically taking into account objections from the banking industry regarding stablecoin earnings.
Prominent changes in the draft law
According to the text shared in the Senate on Monday, cryptocurrency exchanges are prevented from paying any rewards to users’ stablecoin balances. In addition, exchanges’ access to the amount data of user transactions is also limited. This step makes stablecoin reward calculations virtually impossible; It is not limited to just imposing restrictions, it aims to completely eliminate the reward practice.
The previous version of the bill continued to allow limited rewards structures similar to loyalty programs, leaving narrow areas of return. However, with the recent changes, significant cuts have been made in these income exemptions. The banking lobby has put pressure on this on the grounds that stablecoin rewards reduce deposits transferred to traditional banks and negatively affect the credit market. It seems that these concerns were effective in the changes in the draft text.
For Coinbase, this change is far from just a process difference. Based on 2025 figures, the majority of the company’s stablecoin revenue comes from its USDC distribution agreement with Circle. The ban on rewards and data access restrictions in the new law could fundamentally undermine the sustainability of this business model.
Coinbase’s stance and repercussions within the industry
Coinbase has been opposing the bill since last January. The company’s CEO, Brian Armstrong, stated in his posts in January that the current regulations were more appropriate than the new law proposal. The vote, which was planned to be held in the Senate Banking Committee at that time, was postponed indefinitely after Coinbase’s objection.
Although the new draft aims to achieve consensus between banks and cryptocurrency companies, there was no change on the Coinbase side. Following “significant reservations” communicated directly from the company, it was stated that the bill in its current form would not receive support. Closed meetings mediated by the White House also failed to yield consensus and made no progress in the differences between the crypto and banking lobbies.
Sources close to the subject state that Coinbase is still in talks with community banks on new yield-oriented models. Coinbase’s objection to the law is interpreted as the exchange wanting to use its power at the negotiation table to protect its revenue model in the United States. Congress members also take into consideration that a vote without the support of the company will weaken the law.
However, each new change in yield bans further squeezes Coinbase’s high-volume stablecoin revenue. In particular, the approach of US institutions points to a harsher and more singular practice compared to international rules. For example, Ripple’s start of new financial product trials with RLUSD in Singapore shows that a more flexible regulatory environment is possible in other countries.
Cracks began to appear in the coalition behind the bill. Chris Dixon, director of a16z crypto, argued that the stablecoin revenue model debate is slowing down regulatory clarity and expressed his opinion that the law should move forward. This publicly revealed separation between Coinbase and the industry’s leading venture capital actors creates a significant pressure in the legal process.
