The revised Clarity law would prohibit simply holding stablecoins from generating an equivalent “interest,” and it would ban exchanges from rewarding users for depositing or maintaining stablecoins. Coinbase has been earning revenue by sharing a portion of Circle’s interest income generated from USDC reserves, a model that last year accounted for about 19% of its total revenue. If enacted, the rule could erode Coinbase’s key revenue stream as USDC-related income comes under new restrictions.
Coinbase has publicly opposed the amendments, with reports indicating the firm conveyed its opposition to senators as of the latest milestones. The company had already voiced strong resistance in January to delay the legislation. Even with Coinbase’s stance, observers suggest the bill may still clear Congress, reflecting broader regulatory pressures. Ripple CEO Brad Garlinghouse, speaking to YouTube, said the bill is likely to pass despite Coinbase’s rejection of a compromise, noting fatigue among policymakers and stakeholders who are eager for progress.
Leave a Reply