Coinbase, the largest cryptocurrency exchange in the U.S., has again opposed the latest version of the Clarity Act amid a long-running debate surrounding stablecoin yield.
According to a Wednesday report from Punchbowl News, Coinbase told the Senate earlier this week that it could not support the latest bill text, which includes a compromise to ease the banks' concerns over stablecoin yield.
The report, citing four sources familiar with the matter, said Coinbase expressed "significant concerns" about the latest provisions on stablecoin yield, which were led by Senators Thom Tillis and Angela Alsobrooks.
The bipartisan proposal circulated Monday would prevent crypto exchanges from paying rewards on stablecoin balances and further limit incentive structures by restricting access to transaction size data, making it harder to calculate rewards, a source familiar with the talks previously told The Block.
The Block has reached out to Coinbase for further comment.
Banks have strongly pushed back against allowing yield on idle stablecoin holdings, arguing that such incentives could draw deposits away from traditional institutions, which rely on those funds to issue credit.
The crypto industry, on the other hand, has argued that allowing stablecoin yield would expand financial flexibility for customers and create additional revenue opportunities for banks and other institutions.
Despite efforts by the White House to hold multiple closed-door meetings to facilitate a compromise between the two sides, they have yet to reach a resolution on the matter.
Coinbase had previously withdrawn its support for the Clarity Act's Senate Banking Committee draft text in January, which included a ban on stablecoin yield offerings. CEO Brian Armstrong said at the time that banks were lobbying to stifle competition from crypto platforms.
The regulatory outcome for stablecoin yields carries major weight for Coinbase and other crypto firms. Coinbase reported $1.35 billion in stablecoin revenue in 2025, much of which derived from distribution payments tied to its partnership with Circle on USDC. Provisions restricting such rewards could eliminate a major revenue stream.
Coinbase's stock closed essentially flat, up 0.03% at $181.10 on Wednesday. The stock has fallen 7.4% over the past five days and 41% over the past six months. Shares of Circle declined sharply in recent sessions, with Mizuho analysts citing the legislative impasse over the Clarity Act as a primary factor.
Still, discussions on stablecoin yield are active and ongoing, the Punchbowl News report added.
"Bipartisan compromise is necessary for the Clarity Act to pass," Senator Cynthia Lummis wrote on X earlier today. "We're working around the clock to ensure stablecoin rewards are protected and to prevent deposit flight from community banks."
Patrick Witt, the executive director for the President's Council of Advisors for Digital Assets, pointed out that there is "plenty of uninformed FUD" on social media this week. "It's all going to work out. Bullish," he noted.
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