TLDR
- Coinbase told Senate lawmakers it cannot support the latest version of the CLARITY Act due to stablecoin yield language
- The disputed provision would prevent third parties like exchanges from paying stablecoin yields to users
- Banking groups pushed for the restriction, arguing stablecoin yields risk pulling deposits away from banks
- Industry is split — one trade group called it “the best possible result,” another said the text was more restrictive than expected
- Coinbase stock closed down nearly 5% on Wednesday, finishing at $181 after opening above $190
Coinbase has pushed back against the latest proposed compromise in the Senate’s crypto market structure bill, known as the CLARITY Act, over language related to stablecoin yields. The exchange told Senate lawmakers Monday that it could not support the new wording.
🚨 POLITICS: COINBASE REJECTS LATEST SENATE STABLECOIN YIELD COMPROMISE@coinbase has told Senate offices it cannot support the newest CLARITY Act language on stablecoin yields, throwing another wrench into the crypto industry's top legislative priority.
The exchange voiced… pic.twitter.com/gCjK8g4sCW
— BSCN (@BSCNews) March 25, 2026
The revised bill would restrict how stablecoin yield programs work. It would limit structures that look like bank deposit products and tighten what types of activity are allowed.
Coinbase is one of the biggest crypto lobbyists in Washington. When it pulled support for the bill in January, the Senate Banking Committee quickly shelved a scheduled vote to advance the legislation.
This latest pushback is seen as less aggressive than January’s move by CEO Brian Armstrong, but it still creates a real obstacle for the bill’s progress.
Why Stablecoin Yields Are the Sticking Point
The core dispute is over whether crypto exchanges can pay yield to users holding stablecoins. Stablecoin yields are a major revenue source for exchanges like Coinbase.
Banking groups say this is a loophole. The original GENIUS Act banned stablecoin issuers from paying yield directly. Banks argue that exchanges doing so risks pulling deposits out of the traditional banking system.
The crypto lobby disagrees. It says those risks are overstated and that banks are simply trying to block competition.
The White House has hosted at least three meetings trying to get both sides to agree. No deal has been reached.
Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks are leading the latest effort. Senator Alsobrooks has acknowledged the compromise may leave both crypto and banking groups unhappy.
Where the Industry Stands
Not everyone in crypto is against the new bill text. One trade group leader said the provisions were largely expected and described them as a fair balance — preserving rewards while stopping interest-style stablecoin products. “This is the best possible result,” that source said.
Another major trade association took the opposite view, telling Crypto In America the revised language went further than what had been discussed with the White House.
Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, posted to social media Wednesday saying there was “plenty of uninformed FUD circulating.”
“It’s all going to work out. Bullish,” he wrote.
Republican Senator Cynthia Lummis posted the same day that passing the bill cannot wait until 2030. “Bipartisan compromise is necessary for the Clarity Act to pass,” she said.
The House passed its version of the bill in July 2025. Republicans want to move the Senate version before the midterms, when the balance of Congress could shift.
Coinbase stock closed Wednesday at $181, down nearly 5% from its opening price above $190.
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