Coinbase opposes key provisions of CLARITY Act

Traders Union
All News
Crypto News
Coinbase opposes CLARITY Act

Highlights

Coinbase rejected the latest CLARITY Act, stalling the bill.
The dispute has expanded into a broader conflict across the financial sector.
Market reaction was immediate, with crypto stocks falling and approval odds declining.

What started as a narrow technical issue has quickly expanded into a broader conflict between crypto companies, banks, and lawmakers, CoinGape reports. This is already being reflected in market sentiment and investor expectations.

Dispute over stablecoin yields

The main disagreement centers on how yield should be structured. The current draft proposes eliminating interest-like payments and replacing them with “active rewards” that are not tied to traditional banking deposit models.

Coinbase has made it clear to senators that it cannot support this approach. A similar situation occurred earlier, when the company opposed a previous version of the bill, leading to delays. Within the industry, there is no unified stance: some view the proposal as too restrictive, while others consider it a workable compromise.

Discussions took place on Capitol Hill with participation from crypto firms, fintech companies, and investment funds. According to participants, opinions were divided: some described the draft as impractical, while others found it acceptable.

Another point of concern is the role of regulators. Final rules will be defined after the law is passed, raising fears that this could lead to inconsistent interpretations. In particular, market participants worry about restrictions on reward programs tied to user activity.

Market pressure and political factor

The market reacted quickly. Coinbase (COIN) shares dropped from $203 to $181, while Circle briefly fell by around 20%.

Confidence in the bill’s passage has also declined. According to Polymarket, the probability of approval in 2026 fell from 71% to 51% within a few days.

Probability of CLARITY Act approval. Source: Polymarket

Politics is also a key factor. Coinbase is linked to the Fairshake lobbying network, which funds candidates supportive of the crypto industry. In this environment, the company’s approach influences not only markets but also negotiations in Congress.

Senator Cynthia Lummis has urged both sides to reach a compromise, warning that prolonged delays could harm the U.S. financial system.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Why it matters for the industry

At the core of the debate is not just a technical detail, but a business model. For companies like Coinbase and Circle, stablecoin yield is a key revenue driver, not a secondary feature.

Strict limitations could reshape the market by reducing demand for stablecoins and slowing their integration into the U.S. financial system. Banks, meanwhile, are seeking to prevent these products from directly competing with traditional deposits.

The outcome of these negotiations will shape how stablecoins are regulated in the U.S. in the coming years. A compromise could provide clearer rules, while failure could prolong uncertainty and slow market growth.

It has previously been noted that restrictions on yield could directly impact Coinbase’s business model. The exchange relies on reward programs to encourage users to hold digital dollars on its platform, and any ограничения would directly reduce potential revenue.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.