Coinbase Rejects Senate's Latest Stablecoin Yield Compromise in CLARITY Act Talks
Coinbase has pushed back against a new Senate compromise draft on stablecoin yield provisions being negotiated alongside the CLARITY Act, according to Punchbowl News. The company raised its objections with Senate offices this week after revised language circulated by Sens. Thom Tillis and Angela Alsobrooks.
The draft would bar "passive" yield on stablecoin balances, while permitting rewards tied to user activity. It also relies on an "economic equivalence" standard to determine when rewards across platforms are effectively yield, and includes limits on access to transaction-size data, Punchbowl reported.
Coinbase has previously opposed earlier CLARITY Act language during a Senate Banking Committee markup schedule in January; that session was later postponed following pushback from Coinbase and other crypto stakeholders. Prior reporting also referenced White House meetings aimed at narrowing industry disagreements over stablecoin yield.
The policy fight has had market implications. Coinbase and Circle shares have moved amid shifting expectations for how the bill may treat rewards. Coinbase disclosed $1.35 billion in stablecoin revenue in 2025 tied to USDC distribution arrangements, largely stemming from its partnership with Circle in USDC operations. Mizuho analysts have pointed to the legislative stalemate around the CLARITY Act as a contributor to recent share declines.
Sen. Cynthia Lummis said a bipartisan deal will be needed for passage, adding that negotiations continue to preserve stablecoin rewards while addressing concerns about deposit flight from community banks. Patrick Witt, executive director for the President's Council of Advisors for Digital Assets, also commented in the context of market sentiment.
Banks argue that stablecoin yield could pull deposits away from traditional institutions. Crypto firms counter that access to yield broadens financial flexibility for users and institutions. Senators are continuing to review the revised text, with the core issue focused on whether stablecoin rewards should be treated as bank-equivalent yield under the economic equivalence framework.
