Coinbase Once Again Declines to Support Revised CLARITY Act

On March 26, the Cryptocurrency Market Structure Clarity Act (known as the CLARITY Act) hit another snag—this time facing pushback from Coinbase. Coinbase representatives this week raised concerns in Senate offices, noting they do not support the latest version of the bill. The exchange’s key objection centers on the legislation’s “Stable Yield Provision”—not its first pushback on stablecoin yield rules. In January, Coinbase CEO Brian Armstrong pulled support for the bill over the same issue, saying: “We’d rather have no bill than a bad bill.” The latest CLARITY draft explicitly bars crypto platforms from offering yields to stablecoin holders—whether rewards are provided “directly” or “indirectly”—especially when they resemble interest-bearing accounts. It also bans incentives economically equivalent to interest but carves out exceptions for limited activity-based rewards. The bill aims to clarify U.S. cryptocurrency regulation, with its stablecoin yield rules emerging as a major sticking point. Banks have long argued stablecoin rewards would prompt customers to pull savings deposits and opt for higher-yielding stablecoins instead. The crypto industry, by contrast, sees this as banks simply trying to avoid competition.