The legislative timetable for the Clarity Act, which would structure the virtual asset market, has slowed as the White House and Coinbase clash over allowing stablecoin interest. The disagreement raises the likelihood that a Senate markup planned for this month will be postponed. The episode underscores a broader proxy battle between traditional finance and the crypto industry over real-world asset tokenization.
At stake is whether stablecoin issuers can distribute interest income from reserve assets, such as government securities, to users. Coinbase CEO Brian Armstrong publicly withdrew his support for the draft because the amendment would restrict such payments. Traditional banks push back hard, citing concerns about a system that pays yields outside regulatory boundaries and could erode the banks’ net interest margin. NH Investment & Securities analyst Hong Seong-uk said Armstrong’s stance underscores how pivotal this issue is for the survival of stablecoin business models, and that Coinbase’s position signals a major influence on the bill’s timing.
Moreover, the amended act would fold the issuance and distribution of tokenized securities into the existing securities-law framework and keep real-world claims and ownership off-chain, reducing the on-chain utility of tokenization. An industry official warned that broad SEC authority to classify tokens is the greatest risk to the RWA market. Some observers say Coinbase’s opposition may be maneuvering for negotiation, keeping open a path for legislation before the midterm elections. US delays could shape domestic policy timelines, with Korean regulators likely to reference the U.S. framework when shaping STO and other RWA guidelines.
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