TechFlow News, March 26: According to The Block, Coinbase reiterated this week to the U.S. Senate its inability to support the latest draft of the Clarity Act, with the core disagreement centering on provisions related to stablecoin yield.
The latest bipartisan compromise bill—led by Senators Thom Tillis and Angela Alsobrooks—circulated earlier this week. It proposes banning cryptocurrency exchanges from paying users yield on their stablecoin holdings and further constraining incentive structures by restricting access to trading volume data. Coinbase has expressed “serious concerns” regarding the proposal.
This marks the second time Coinbase has withdrawn its support. In January, Coinbase pulled its backing after the Senate Banking Committee’s draft included a ban on stablecoin yield; CEO Brian Armstrong noted at the time that traditional banks were lobbying to suppress competition from crypto platforms.
The regulatory trajectory for stablecoin yield carries significant financial implications for Coinbase. In 2025, the company’s stablecoin-related revenue reached $1.35 billion, most of which stems from its revenue-sharing arrangement with Circle on USDC. Circle’s stock price has recently declined sharply; Mizuho analysts attribute this drop to the legislative stalemate surrounding the Clarity Act.
