Coinbase has again declined support once for the passage of the infamous CLARITY ACT, stating that new text of the bill “ compromises to ease the banks’ concerns over stablecoin yield.”
The crypto exchange’s comments come against the backdrop of U.S. regulators trying to hurry the already delayed CLARITY ACT given a strong push from president Donald Trump.
According to a report published Wednesday by Punchbowl News, Coinbase informed the Senate earlier this week that it could not support the latest version of the bill, which compromises concerns over stablecoin yield.
The report, citing four sources familiar with the discussions, noted that Coinbase raised “significant concerns” about the revised stablecoin yield provisions introduced by Senators Thom Tillis and Angela Alsobrooks.
The set-back comes after previously the senate committee had reached a compromise on stablecoin yield with an agreed upon principle coming into play.
The agreement, which was also backed by the White House, marked the first significant breakthrough after months of difficult discussions and considerable lobbying from both banks and cryptocurrency startups behind the scenes.
However, with Coinbase now pushing back on the new text, the CLARITY ACT has again landed in a limbo, with no direction at the moment.
The CLARITY Act still faces several procedural hurdles, including committee approval, a full Senate vote requiring bipartisan support, reconciliation with the House version of the bill, and ultimately the president’s signature.
Why are banks against it?
Banks have strongly opposed the idea of paying interest, or yield, on stablecoins that are sitting unused. They worry that if people can earn returns on these digital dollars, they might move their money out of regular bank accounts.
Since banks depend on deposits to lend money, like mortgages, car loans, and business credit, losing those funds could make it harder for them to operate normally.
On the other hand, companies in the crypto industry believe allowing stablecoin yield would give customers more choices and make their money work harder.
They also say that banks could benefit from offering new products and making more money from these services.
Coinbase’s previous disagreement
Earlier this year, Coinbase stepped back from supporting an earlier version of the Clarity Act after lawmakers proposed banning companies from offering interest, or yield, on stablecoins.
At the time, CEO Brian Armstrong suggested that traditional banks were lobbying for these restrictions because they view crypto platforms as direct competitors and want to slow their expansion.
The outcome of the current debate matters a lot for Coinbase and other crypto firms because it directly affects a key source of revenue. In 2025, Coinbase made about $1.35 billion from business related to stablecoins.
Much of that money came from its partnership with Circle, the company behind the USDC stablecoin, where Coinbase receives payments tied to distributing and supporting the token.
If new rules end up limiting or banning rewards on stablecoins, it could take away a significant stream of income for these companies.
In practical terms, the decision on stablecoin yield isn’t just a technical policy issue, it could reshape how profitable the stablecoin business remains for the crypto industry going forward.
Even though the White House has tried to bring both sides together through private meetings to find common ground, they still haven’t been able to agree on a solution.
Previously, U.S. President Donald Trump had also urged Congress to move fast on the Clarity Act, describing it as a critical next step in accomplishing his larger crypto agenda.
As CoinHeadlines reported earlier, Trump stated that the United States must finalise market structure improvements “ASAP,” stressing that Americans deserve higher returns as banks report record profits.