Coinbase told Senate offices this week it could not support the latest version of the stablecoin yield compromise in the Digital Asset Market Clarity Act.
The exchange raised concerns during a Monday meeting over provisions led by Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.). This marks the second time Coinbase has effectively stalled the bill over the same issue.
Community Backlash Builds
The rejection triggered a wave of frustration across the crypto industry. On X (Twitter), users and industry figures publicly turned against CEO Brian Armstrong.
Delphi Ventures executive Tommy Shaughnessy struck a more measured tone but still disagreed with the approach.
He argued the industry needs legislation before Democrats potentially retake the House, suggesting stablecoin yield restrictions could be revisited once the market grows.
Notably, key senators had projected optimism over recent days that a deal was close.
Why Coinbase Won’t Fold
Coinbase generated $1.35 billion in stablecoin revenue in 2025, roughly 19% of total revenue.
The latest draft bans yield on passive stablecoin balances and anything “economically equivalent to interest.” It would direct the SEC, CFTC, and Treasury to define permissible rewards within 12 months.
That regulatory uncertainty is the core problem. Coinbase cannot model future revenue against rules that do not yet exist.
The exchange also serves as a top funder of the Fairshake super PAC network, giving it political leverage most crypto firms lack.
However, not everyone in the industry agrees with the hardline stance. An industry call this week revealed sharp divisions, with some crypto stakeholders describing the compromise as workable while Coinbase pushed back.
The bill risks running out of time entirely if the Senate Banking Committee cannot advance it before late April.
