Galaxy CEO: Stablecoin Debate in the "CLARITY Act" Could Derail the Entire Bill

On January 21, Galaxy Digital CEO Mike Novogratz took to social media to note that the yield mechanism issue in the stablecoin bill is highly contentious and could easily derail the entire legislation—once again, politics are taking precedence over sound policy. Banking institutions are pushing back against crypto platforms offering yield rewards to users (even though the GENIUS Bill explicitly permits this practice). If the bill fails to pass, their real fear is likely the disruption of the current market landscape. Should this issue lead to the shelving of the market structure bill, accountability will extend broadly—but primary responsibility will undoubtedly fall on the banking industry and the Republican and Democratic senators who back them. The biggest loser? American consumers. Here’s hoping reason prevails in the end. **BlockBeats Note**: Whether stablecoins can offer yield to holders is the most divisive point between the traditional banking sector and the crypto industry in the CLARITY Bill. Leading crypto firms, with Coinbase at the forefront, reject stricter stablecoin regulations being included in the CLARITY Bill. As of 2025, stablecoin yield is projected to account for roughly 18-20% of Coinbase’s total revenue.