Coinbase reiterated this week to the U.S. Senate that it cannot support the latest draft of the Clarity Act, with the core disagreement centering on provisions related to stablecoin yield. A new bipartisan compromise proposal—led by Senators Thom Tillis and Angela Alsobrooks—circulated on Monday. The proposal would prohibit cryptocurrency exchanges from paying users yield on stablecoin holdings and further constrain incentive structures by restricting access to trading volume data.
Coinbase expressed “serious concerns” regarding the proposal. This marks the second time Coinbase has withdrawn its support. In January, Coinbase pulled its backing after the Senate Banking Committee’s draft included a ban on stablecoin yield—a move Armstrong attributed to lobbying efforts by traditional banks seeking to stifle competition from crypto platforms.
The regulatory trajectory for stablecoin yield carries significant financial implications for Coinbase. The company’s stablecoin-related revenue reached $1.35 billion in 2025, with the majority stemming from its revenue-sharing arrangement with Circle on USDC. Circle’s stock price has recently plunged sharply; Mizuho analysts attribute the decline to legislative gridlock surrounding the Clarity Act.
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