Coinbase Pushes Back on New Clarity Act Draft Over Stablecoin Yield Restrictions

Coinbase told the U.S. Senate again this week that it cannot back the latest draft of the Clarity Act, citing objections to language governing stablecoin yield payments, according to The Block. A new bipartisan compromise circulated this week by Senators Thom Tillis and Angela Alsobrooks would bar cryptocurrency exchanges from paying users yield on stablecoin balances. The draft also tightens access to transaction-volume data as part of an effort to curb incentive-driven structures. Coinbase said it has "serious concerns" about the proposal. The move marks Coinbase's second pullback from supporting the legislation. In January, the company withdrew its backing after the Senate Banking Committee's draft included a stablecoin yield ban. CEO Brian Armstrong said at the time that banks were lobbying to limit competition from crypto platforms. The outcome of stablecoin-yield policy carries meaningful financial stakes for Coinbase. The company generated $1.35 billion in stablecoin-related revenue in 2025, with most tied to revenue-sharing arrangements with Circle for USDC. Circle shares have recently fallen sharply, with Mizuho analysts linking the decline to legislative gridlock around the Clarity Act.