Coinbase standoff over stablecoin reward CLARITY is now holding up rules for the entire US crypto market

The debate surrounding passive stablecoin yield rewards, specifically Coinbase's objection to restrictive language, is currently holding up the passage of the CLARITY Act. While Coinbase has not publicly reiterated its opposition as strongly as in January, the fight over this single product feature threatens the entire legislative package, which is critical for defining the US crypto operating environment. The CLARITY Act aims to establish jurisdictional clarity between the SEC and CFTC, grant the CFTC authority over spot crypto markets, create a lawful fundraising path for digital commodity offerings, and protect developers and self-custody rights. Banks favor the bill to close perceived loopholes regarding rewards, while crypto firms see banning rewards as anti-competitive. The market is pricing this uncertainty aggressively, as evidenced by drops in Circle and Coinbase stock. If a compromise on yield is not reached before legislative time runs out, the industry will continue to operate under ambiguous agency guidance, leaving key issues like developer liability, SEC/CFTC boundaries, and institutional access unresolved.

(Source：CryptoSlate)