TLDR
- Coinbase again declined to support the latest Clarity Act draft, Punchbowl News reported.
- The dispute centers on language that would limit stablecoin rewards on crypto platforms.
- The latest draft followed talks led by Senators Thom Tillis and Angela Alsobrooks.
- Coinbase had also opposed an earlier draft in January over stablecoin yield rules.
- Stablecoin revenue remained a major business line for Coinbase in 2025.
Coinbase has again refused to back the latest Clarity Act draft, according to a report, as lawmakers continue to debate stablecoin rewards. The exchange raised concerns about new language that would restrict how crypto platforms handle yield on stablecoin balances.
Coinbase renews opposition to revised bill
Punchbowl News reported that Coinbase told Senate offices this week it could not support the updated draft. The report cited four sources familiar with the matter. It said the company had “significant concerns” about the latest stablecoin yield language.
The revised proposal was circulated on Monday. It was part of a bipartisan effort to address objections from banks. Senators Thom Tillis and Angela Alsobrooks were involved in the latest talks.
The draft would stop crypto exchanges from paying rewards on stablecoin holdings in many cases. It would also limit access to transaction size data tied to reward models. That could make reward calculations harder for platforms.
Talks on the bill are still active. The Block said it had contacted Coinbase for comment. No final agreement has been announced.
Stablecoin rewards remain the main fault line
Banks have pushed back against stablecoin yield for months. They argue that reward-bearing stablecoins could pull deposits from savings accounts. They say that would reduce funds available for lending.
Crypto firms have rejected that view. They say stablecoin rewards can give users more choice and create new financial products. Coinbase has been among the most vocal companies on this issue.
In January, Coinbase had already withdrawn support for an earlier Senate Banking Committee draft. Chief Executive Brian Armstrong said at the time, “We’d rather have no bill than a bad bill.” He also accused banks of trying to limit competition from crypto platforms.
The latest text appears to keep broad restrictions in place. It would bar rewards that are “economically equivalent” to interest. At the same time, it may allow limited activity-based incentives, such as loyalty programs or promotions.
The outcome matters for Coinbase and the wider market
The issue carries weight for Coinbase because stablecoin income has become a major revenue source. The company reported $1.35 billion in stablecoin revenue in 2025. Much of that came from its partnership with Circle on USDC.
Coinbase receives most of the related interest income for USDC held on its platform. That means tighter rules on rewards could affect an important business line. It also explains why the company has kept pressure on lawmakers during the talks.
Market reaction has shown how closely investors are watching the bill. Coinbase shares closed at $181.10 on Wednesday, while Circle also faced pressure in recent sessions. Analysts at Mizuho linked recent weakness in Circle shares to the debate around the draft.
Lawmakers and White House officials have continued private discussions in search of a compromise. Senator Cynthia Lummis wrote on X, “Bipartisan compromise is necessary for the Clarity Act to pass.” For now, Coinbase remains opposed, and the stablecoin reward dispute is still unresolved.
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