The US-based cryptocurrency exchange Coinbase has once again announced its refusal to back the latest version of the Digital Asset Market Clarity Act currently under debate in the US Senate. The new draft—spearheaded by Senators Thom Tillis and Angela Alsobrooks—was rewritten in response to strong opposition from the banking industry, especially regarding yields paid on stablecoins.
Key Amendments in the Draft Bill
According to the text released in the Senate on Monday, cryptocurrency exchanges would be barred from paying any rewards on users’ stablecoin balances. Furthermore, exchanges would face new limits on their access to data detailing the volume of users’ transactions. This move effectively abolishes stablecoin yield programs, aiming not just to restrict them but to fully eliminate the practice by restricting both reward payments and necessary data access.
Unlike earlier versions of the proposal—which left some room for limited reward structures reminiscent of loyalty programs—the latest amendments have imposed far stricter cuts. These changes reflect pressure from the banking lobby, which argues that stablecoin rewards siphon deposits away from traditional banks and weaken credit markets. The updated language in the bill follows from these financial sector concerns.
For Coinbase, the repercussions go well beyond procedural tweaks. As of 2025 projections, a significant portion of the company’s stablecoin-derived revenue comes from its USDC distribution partnership with Circle. The proposed ban on rewards and the planned restrictions on transaction data access could fundamentally undermine this key business model.
Coinbase’s Stance and Implications for the Industry
Coinbase has opposed the legislation since January. CEO Brian Armstrong made public statements then, arguing that current regulations are more effective than the new bill’s proposals. During that period, the Senate Banking Committee postponed a scheduled vote indefinitely after Coinbase registered its objections.
Although the revised draft seeks to bridge the gap between banks and crypto firms, Coinbase’s position remains unchanged. The company, in direct communications, reiterated its “major reservations” and stated it could not support the bill as written. Reports suggest that even closed-door negotiations brokered by the White House failed to bring the crypto and banking sectors closer, leaving fundamental disagreements as entrenched as ever.
Sources close to the process say Coinbase is still exploring new yield-oriented partnership models with community banks. Many interpret the exchange’s firm stance as a strategy to safeguard its revenue streams in the US by leveraging its influence at the bargaining table. Lawmakers are also reportedly mindful that pushing the bill through without Coinbase’s backing could expose it to weaknesses and erode industry confidence in the legislation.
Each new tightening of yield restrictions would further shrink Coinbase’s sizeable stablecoin income. US regulators seem poised to enforce these rules more rigidly than their international counterparts. A case in point: Ripple’s recent launch of new financial products involving RLUSD in Singapore highlights how regulatory environments elsewhere can prove more adaptable and open to innovation than in the United States.
Tensions are also surfacing within the coalition backing the bill. Chris Dixon, an executive with venture firm a16z crypto, has argued that prolonged debate over the stablecoin revenue model is dragging out regulatory clarity, and urged lawmakers to press on with the legislation. This divide between Coinbase and major venture capital voices is emerging as a significant dynamic in the legislative process, highlighting the internal pressures shaping the future of digital asset regulation in the US.
