Rich by Coin

US crypto exchange Coinbase is reportedly pressing lawmakers to resist a push to ban certain decentralized finance provisions in the CLARITY Act. A Bloomberg report cited a person familiar with the firm’s thinking that Coinbase may reconsider its support for the bill if it restricts stablecoin issuers from offering rewards on crypto exchanges and other platforms.

Banking groups have been concerned that stablecoin rewards and income-generating products could siphon trillions of dollars from the traditional banking system. An anti-DeFi group was seen advertising on Fox News, urging pressure on senators to advance crypto market structure legislation that would ban the DeFi provisions seen as a threat to the banking sector. The crypto community has argued back, with Stand With Crypto saying its supporters have sent more than 135,000 emails to senators to protect stablecoin rewards. The US Senate Banking Committee is set to discuss the issue in a markup session this Thursday.

The GENIUS Act, passed in July, prohibits stablecoin issuers from offering interest or yield to holders, but it does not explicitly extend the ban to exchanges or third parties, potentially enabling issuers to sidestep the law via partner platforms. Coinbase has sought a national trust banking charter, which would permit offering rewards under those rules, even as bankers push to close the loophole created by CLARITY Act. Stablecoins have become a major revenue driver for Coinbase, generating nearly $247 million in Q4, in addition to $154.8 million from blockchain rewards. Banning rewards on products like Circle’s USDC, which currently yields around 3.5%, could hit Coinbase and other trading platforms hard.

Crypto market structure laws may not take effect until 2029, and attention to the CLARITY Act could be influenced by the 2026 US midterm elections, with some forecasts suggesting passage may slip to 2027 with final implementation in 2029. Senate Banking Committee Chair Tim Scott has expressed optimism that the bill could pass sooner and deliver tangible results for the American people.