Coinbase May Withdraw Support for CLARITY Act Due to Stablecoin Reward Ban

Odaily News According to Bloomberg citing informed sources, U.S. cryptocurrency exchange Coinbase is increasing pressure on American lawmakers to oppose a proposal within the major cryptocurrency bill known as the CLARITY Act that would ban certain decentralized finance provisions. The report states that if the bill restricts stablecoin issuers from offering rewards on platforms like crypto exchanges, Coinbase may reconsider its support for the legislation.

Banking groups are concerned that stablecoin rewards and yield products could siphon trillions of dollars away from the traditional banking system. The GENIUS Act, passed in July 2025, prohibits stablecoin issuers from providing interest or yields to holders but does not explicitly ban third parties like crypto exchanges from offering rewards. The banking industry is now attempting to close this loophole through the CLARITY Act. Stablecoins have become a major revenue source for Coinbase, contributing nearly $247 million in revenue in the fourth quarter of 2024. The U.S. Senate Banking Committee is expected to discuss this issue at its meeting this Thursday.