Overview
- Coinbase told Senate offices it cannot back the latest CLARITY Act draft because of new limits on paying returns to stablecoin holders.
- The draft would block yield paid “directly or indirectly” and treats rewards that are economically equivalent to bank interest as prohibited, while allowing only activity-based perks like loyalty promos.
- CEO Brian Armstrong said big banks are pushing to choke off stablecoin yields, a policy that would hit Coinbase’s USDC rewards business that produced about $1.35 billion in 2025.
- The OCC’s separate GENIUS proposal would shut down most third‑party stablecoin yield programs, and the final rule could harden or relieve pressure on Congress to legislate a ban.
- Senate sources said a fresh draft could be released as soon as next week, and industry contacts said Coinbase is preparing a counterproposal as crypto-linked stocks swung on reports of tighter yield rules.