The largest US crypto exchange may withdraw support for the landmark bill if lawmakers restrict platform-based stablecoin rewards.
Coinbase is escalating pressure on US lawmakers ahead of a critical Senate markup this week, threatening to withdraw support for the CLARITY Act if stablecoin rewards face new restrictions.
The Senate Banking Committee is set to mark up the Digital Asset Market CLARITY Act on January 15, and Coinbase has drawn a line in the sand. The exchange stated it may oppose the landmark crypto bill if the final text includes anything beyond enhanced disclosure requirements for stablecoin rewards.
The dispute centers on whether platforms like Coinbase should be allowed to offer yield on stablecoin holdings. Currently, Coinbase provides roughly 3.5% rewards on USDC for Coinbase One subscribers. Banking groups have lobbied to restrict such offerings to regulated financial institutions, arguing they threaten traditional deposit bases.
The stakes are enormous for Coinbase. Bloomberg estimates the exchange generated approximately $1.3 billion in stablecoin-related revenue in 2025, largely through its revenue-sharing agreement with Circle, the issuer of USDC. This income stream proved essential during market downturns when trading volumes dropped.
Coinbase argues that restricting platform-based rewards would undo compromises already established in the GENIUS Act, which was signed into law in July 2025. That legislation banned stablecoin issuers from paying interest directly but explicitly allowed third-party platforms to offer rewards.
The markup session on January 15 will determine whether a compromise emerges. Some senators have floated a middle ground, allowing rewards only for firms holding bank or trust charters. Prediction markets on Kalshi and Polymarket currently show passage odds between 69% and 77% for the first half of 2026. Analysts warn that a partisan markup without bipartisan support could significantly reduce those odds. The bill must advance by Q2 to avoid stalling amid midterm election politics.
This is a developing story as lawmakers finalize the bill language. The outcome could reshape how Americans earn yield on digital dollars. Not financial advice.
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Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
