The CLARITY Act is moving again, with a timeline that appears likely to advance to a Senate markup in April and potential passage by May. The latest draft would ban passive stablecoin yield while allowing limited, activity-based rewards.
In a notable set of figures, Coinbase and Circle generated around $2.75 billion in revenue from USDC reserves in 2025, with Coinbase accounting for about $1.35 billion. The proposed changes would remove passive yield, which would directly impact that revenue stream.
Coinbase supports clearer DeFi rules and a defined regulator split but warns that vague language could empower future regulators, and the company is preparing a counterproposal. The quote from Coinbase’s Chief Legal Officer underscores concerns about overbroad regulatory authority, as Grewal notes that ambiguous rules could invite future reinterpretation.
Industry tensions are evident as leaders like Jamie Dimon and Brian Armstrong clash over stablecoin economics, underscoring the urgency of policy action as White House advisers push for progress. If the market keeps broader reward structures, stablecoins could yield 4–5% returns and liquidity would stay strong; tighter restrictions could redirect capital toward traditional systems.
The full draft is expected soon, and the next weeks will decide how crypto in the U.S. operates, from user rewards to billion-dollar revenue models. The CLARITY Act could move to Senate markup in April, with a potential final vote by May if momentum continues, aiming to reduce passive earnings but provide clearer rules for platforms.
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