Coinbase is reassessing its support for the Clarity Act as tensions rise in Washington over proposed restrictions on stablecoin rewards, adding new uncertainty to the future of US crypto market structure legislation. The exchange has signaled opposition to provisions that could limit or ban rewards linked to dollar backed stablecoins, arguing that such measures would undermine competition and consumer choice. As the Senate Banking Committee prepares for a key markup, Coinbase has pushed lawmakers to focus instead on disclosure and transparency requirements rather than outright restrictions. Banking industry groups have lobbied aggressively against stablecoin rewards, warning that they could draw deposits away from traditional insured accounts. Coinbase, however, maintains that limiting rewards would primarily benefit incumbent banks while accelerating the growth of foreign stablecoin issuers operating outside US regulatory reach.
The debate highlights how stablecoins have become a central fault line in US crypto policy. Rewards tied to stablecoin balances have emerged as a competitive feature for exchanges and fintech platforms, blurring the line between payments, savings, and investment products. Coinbase has historically benefited from partnerships with major stablecoin issuers, making the issue particularly sensitive for its business model. Industry advocates argue that banning rewards could stall innovation just as global competitors move more aggressively into digital payments and tokenized finance. Supporters of the Clarity Act see it as a long overdue effort to clarify oversight between regulators and establish clear rules for crypto firms, but disagreements over stablecoins risk slowing momentum. With bipartisan negotiations ongoing, the stablecoin provisions are now viewed as one of the most difficult obstacles to final passage.
The political stakes are rising as lawmakers aim to advance the bill ahead of the 2026 midterm elections, a timeline many in the industry see as critical. The Senate Banking Committee is coordinating closely with the White House, where officials tied to Donald Trump have indicated support for moving crypto legislation forward. Still, opposition from influential industry players like Coinbase could complicate efforts to present a unified front. Analysts warn that prolonged disagreement may delay comprehensive crypto regulation, extending uncertainty for firms operating in the United States. For markets, the outcome could shape how stablecoins are used, rewarded, and regulated for years to come, reinforcing their role as core financial infrastructure rather than peripheral crypto products.
