Coinbase May Drop Support for CLARITY Act Over Stablecoin Conflicts
Coinbase might withdraw support for the CLARITY Act if it restricts stablecoin reward programs, which are vital to its revenue.Summary
Coinbase is considering withdrawing its support for the CLARITY Act as Congress prepares to mark up the legislation in the Senate, due to potential restrictions on stablecoin reward programs. These rewards, derived from interest income on reserves backing USD Coin (USDC), form a core part of Coinbase's revenue model, estimated to have generated around $1.3 billion in 2025 from stablecoin-related activities. The conflict centers on whether these yields constitute traditional banking products, which banking groups argue could draw deposits from traditional banks, or if they are crypto-specific consumer incentives. Coinbase and crypto advocates argue that regulating these rewards like bank interest would stifle innovation and harm the competitiveness of U.S. platforms. The outcome of the Senate Banking Committee's review this week could significantly shape future U.S. crypto policy, making Coinbase's potential withdrawal a major point of leverage.
(Source：Bitcoin Magazine)