CLARITY Act Stirs Debate as Coinbase Pushes Back on Stablecoin Yield Restrictions
The post CLARITY Act Stirs Debate as Coinbase Pushes Back on Stablecoin Yield Restrictions appeared on BitcoinEthereumNews.com.
TLDR: Coinbase risks losing $1.35B in annual revenue if the CLARITY Act’s passive yield ban passes as written. White House Crypto Adviser Patrick Witt warned Coinbase to stop blocking the bill or face losing the deal entirely. JPMorgan’s Dimon publicly clashed with Coinbase’s Armstrong at Davos 2026 over the CLARITY Act’s stablecoin terms. Coinbase charges a 35% commission on staking rewards, making yield protections central to its entire business model. The CLARITY Act is at the center of a heated debate between Coinbase and U.S. lawmakers. As the Senate Banking Committee prepares to release the full draft of the Digital Asset Market Clarity Act of 2025, Coinbase has raised “significant concerns” about stablecoin yield provisions. Critics argue the exchange is stalling the largest crypto legislation in U.S. history. Supporters say Coinbase is protecting both its business and the broader crypto ecosystem. Coinbase’s Revenue at Risk as Yield Ban Looms The latest Senate draft includes a provision that bans “passive yield” on stablecoin balances. This means platforms cannot pay users simply for holding stablecoins. Only narrow, activity-based rewards may survive under the current language. The financial stakes for Coinbase are substantial. The exchange and its partner Circle earned roughly $2.75 billion gross in 2025 from interest on U.S. Treasuries backing USDC. Circle retains the gross earnings but forwards over 60% to Coinbase. Coinbase pockets all on-platform rewards and around 50% from other sources. This adds up to an estimated $1.35 billion, representing nearly 19% of its total 2025 revenue. A ban on passive yield could eliminate that income almost entirely. https://t.co/4XR9SjxBfp — Diana (@InvestWithD) March 28, 2026 Coinbase Chief Legal Officer Paul Grewal made the company’s position clear. “My memory is a little better than to trust future rogue regulators to faithfully apply the law,” Grewal said. His concern centers on…
Filed under: News - @ March 29, 2026 9:10 pm