Coinbase Dismisses Revised Clarity Act, Signals Ongoing Friction
In January, Coinbase CEO Brian Armstrong posted on X the evening earlier than a deliberate Senate Banking Committee markup, declared his firm couldn’t again the invoice, and compelled the listening to off the calendar.
Now, after lawmakers unveiled contemporary compromise language for the Digital Asset Market Clarity Act, the change is signaling the same resistance.
A Bill That Keeps Hitting Walls
Senators Thom Tillis and Angela Alsobrooks introduced the revised textual content March 20, with White House backing. The compromise bans rewards paid merely for holding a stablecoin however permits activity-based rewards tied to funds or platform use.
Banks obtained what they needed most. Crypto platforms obtained a slender lane — although what qualifies as activity-based rewards stays, in line with sources aware of the draft, frustratingly imprecise.
The SEC, CFTC, and Treasury would have 12 months to outline the principles extra exactly, a timeline that provides little rapid consolation to the business.
Crypto insiders who attended a closed-door Capitol Hill session Monday stated the language was overly restrictive. One individual aware of the business’s first look described the opening impression as a letdown.
What’s At Stake For Coinbase
The numbers behind Coinbase’s opposition should not onerous to search out. Stablecoin-related income made up roughly 20% of the corporate’s whole earnings within the third quarter of 2025.
Reports say the change pulled in $1.35 billion from stablecoins in 2025 alone, most of it from USDC distribution preparations with Circle.
Armstrong’s public argument has been that USDC rewards should not a deposit product — they’re income sharing from curiosity earned on Treasury payments held in reserve.
Treasury Sec. Scott Bessent has already criticized what he referred to as recalcitrant actors resisting compromise, urging Senate passage this spring. Banks, different crypto corporations, and the White House are more and more aligned. Coinbase isn’t.
A Fragile Timeline With New Complications
The invoice nonetheless faces a number of hurdles earlier than it turns into regulation, together with a full Senate flooring vote requiring 60 votes and reconciliation with the House-passed model from July 2025.
Senator Bernie Moreno has been direct: if the invoice doesn’t attain the Senate flooring by May, crypto laws dangers going darkish till after the midterm cycle.
The stablecoin market sits at $316 billion. For now, the clock is operating — and Coinbase has made clear it isn’t able to get behind the deal.
Featured picture from Quakers and Business, chart from TradingView
