Coinbase has informed the U.S. Senate that it cannot support the latest version of the Clarity Act, which would restrict yields on stablecoins.
Coinbase has once again refused to back the latest draft of the Clarity Act, the American stablecoin regulation bill. According to a report by Punchbowl News published on Wednesday, March 25, the leading U.S. exchange told the Senate it cannot support the current text, expressing “significant concerns” over provisions related to stablecoin yield.
The bipartisan proposal circulated on Monday, championed by senators Thom Tillis and Angela Alsobrooks, would prohibit exchanges from paying yields on stablecoin balances. It would also limit incentive structures by restricting access to transaction size data, making it harder to calculate rewards for users.
The stakes are extremely high for Coinbase. The exchange recorded $1.35 billion in stablecoin revenue in 2025, much of it derived from distribution payments tied to its partnership with Circle on USDC. Any restrictions on this front would eliminate one of the company’s primary revenue streams.
This is not the first time Coinbase has opposed the bill. In January, the exchange had already withdrawn its support for the text passed by the Senate Banking Committee, which included a ban on stablecoin yield offerings. On that occasion, CEO Brian Armstrong stated that banks were lobbying to stifle competition from crypto platforms.
The dispute reflects diverging positions between the banking sector and the digital asset industry. Banks firmly oppose yields on stablecoin reserves, arguing that such incentives could drain deposits from traditional institutions, which rely on those funds to extend credit. The digital asset sector, on the contrary, argues that allowing stablecoin yield would broaden financial flexibility for customers and create additional revenue opportunities for banks and other institutions. Despite the White House organizing several closed-door meetings to facilitate a compromise, the parties have yet to reach an agreement.
