Coinbase generated $1.35 billion in stablecoin revenue in 2025, placing new regulatory proposals on yield restrictions at the center of its business model risk. The exchange’s renewed opposition to the Clarity Act highlights how policy design could directly reshape crypto revenue streams.
According to Punchbowl News, Coinbase told U.S. Senate officials earlier this week it cannot support the latest draft of the Clarity Act. The revised bill includes a compromise aimed at addressing bank concerns, but would prohibit exchanges from offering yield on stablecoin balances. Sources familiar with the discussions said the proposal would also limit access to transaction size data, complicating reward calculations.
Will Stablecoin Yield Restrictions Reshape Crypto Revenues?
The dispute reflects a broader divide between traditional banks and crypto firms over deposit flows and financial incentives. Banks argue yield-bearing stablecoins could pull capital away from lending systems, while crypto platforms view them as a core product feature. Coinbase’s $1.35 billion in stablecoin revenue contrasts with declining equity performance, with its stock down 41% over the past six months, underscoring the stakes tied to yield policies.
Senator Cynthia Lummis emphasized the need for agreement, stating, “Bipartisan compromise is necessary for the Clarity Act to pass.”
She added that negotiations aim to both preserve stablecoin rewards and prevent deposit flight from smaller banks. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, dismissed market anxiety, noting there is “plenty of uninformed FUD” surrounding the debate. But can lawmakers balance bank stability concerns with crypto market innovation?
Bipartisan compromise is necessary for the Clarity Act to pass. We’re working around the clock to ensure stablecoin rewards are protected and to prevent deposit flight from community banks.
— Senator Cynthia Lummis (@SenLummis) March 25, 2026
America’s financial future is at stake now— we can’t wait until 2030 for another chance.
Coinbase has previously withdrawn support for earlier drafts containing similar yield restrictions, signaling a consistent position as negotiations evolve. The White House has hosted multiple closed-door sessions to broker consensus, yet no agreement has emerged. Market participants will now watch whether lawmakers adjust the yield provisions or advance the bill as-is, with stablecoin economics hanging on the outcome.
