The latest version of the CLARITY Act has lost backing from major crypto exchange Coinbase. The company objects to provisions restricting stablecoin rewards. Here is what happened.
According to Punchbowl News, citing informed sources, Coinbase expressed serious concern over sections of the Clarity Act crypto coinbase that address stablecoin yield.
This is not the first time the exchange has pulled its support. The reason remains the same: limits on stablecoin yield payments.
Senators Thom Tillis and Angela Alsobrooks recently introduced a compromise version of the Coinbase CLARITY Act. Negotiations were ongoing at the time of writing.
What Is the Disagreement About?
Coinbase objected to several specific proposals.
First, the new version prohibits exchanges, brokers, and affiliated companies from paying rewards on stablecoin balances if those payments resemble interest on bank savings accounts. This effectively creates a stablecoin yield ban that directly impacts Coinbase’s business model, especially in light of the Clarity Act stablecoin rewards provision coinbase.
Second, the restrictions also affect access to transaction data. They tie rewards to customer activity in ways the exchange finds problematic.
Traditional financial institutions view such rewards as a threat. They fear deposit outflows and a shrinking lending base. Crypto industry participants see stablecoin yield differently. They argue it expands customer opportunities and creates additional revenue streams for market participants.
Regulators—including the SEC, CFTC, and Treasury Department—would have one year to finalize the criteria.
Some Context on Coinbase CLARITY Act
In January 2026, Coinbase withdrew support for an earlier version of the bill for similar reasons.
The company has a revenue-sharing agreement with Circle, the issuer of USDC▲$0.9999. Stablecoin-related income makes up a significant portion of its business.
Negotiations between market participants and banks continue with White House mediation. No final agreement has emerged.
Progress on the Coinbase CLARITY Act will depend on whether both sides can balance protecting the traditional banking system with supporting crypto infrastructure.
