Stablecoin yield fight threatens to sink CLARITY Act as Coinbase and White House clash
A dispute over stablecoin yield payments has caused Coinbase to withdraw support for the CLARITY Act, jeopardizing the bill.Summary
Coinbase CEO Brian Armstrong withdrew the company's support for the Digital Asset Market Clarity Act (CLARITY Act) after disagreements, particularly concerning stablecoin yield payments, leading to reported fury from the White House, which allegedly labeled the move a "rug pull." The core conflict centers on banking groups' concerns that allowing crypto platforms to offer interest on stablecoin balances could destabilize traditional savings accounts. The Senate's draft text aimed to ban yield simply for holding stablecoins, which threatens a major revenue stream for Coinbase, projected to exceed $1 billion in 2025 from USDC partnerships. Armstrong framed the withdrawal as a necessary stand against bank lobbying seeking regulatory capture to eliminate competition. Coinbase also cited other concerns in the draft, including a "de facto ban" on tokenized equities and problematic DeFi prohibitions. The resulting uncertainty caused the Senate Banking Committee markup to be postponed, putting the bill's future in jeopardy, although White House crypto czar David Sacks urged the industry to resolve differences for the legislation's passage.
(Source：The Block)