C onsumers would lose approximately $800 million in returns if the U.S. government bans stablecoin yield, according to a Council of Economic Advisers analysis. This figure undercut the banking industry's argument that such rewards cause deposit flight risk.
Related Brief 20h ago
crypto regulation Coinbase Endorsement Clears Path for Clarity Act Markup by April
The Clarity Act is positioned for markup by April. This movement follows an endorsement from Coinbase CEO Brian Armstrong, who previously avoided supporting the bill due to unresolved concerns regarding stablecoin yield provisions. The endorsement is significant because Coinbase earned an estimated 20% of its 2025 revenue—$1.35 billion—from stablecoin rewards. The legislative gridlock had been sustained by the banking sector, which claimed stablecoin yields could trigger up to $6.6 trillion in deposit flight. The President’s Council of Economic Advisers rejected that figure, finding stablecoin yields have minimal impact on bank deposits.
Coinbase CEO Brian Armstrong endorsed the passage of the Digital Asset Market Clarity Act on April 9, 2026. Armstrong had previously blocked the bill twice this year, first in January and again in March, over provisions that would restrict stablecoin yield payments to users.
Related Brief 2d ago
crypto regulation Coinbase’s $800 million revenue line is under threat — and that’s why it’s blocking the CLARITY Act
Provisions in the CLARITY Act could strip Coinbase of an estimated $800 million in annual revenue. That’s not a policy disagreement. It’s a direct hit to the core of its 2025 business model, where stablecoin revenue accounted for $1.35 billion — nearly 20% of total income. The Tillis-Alsobrooks draft doesn’t just limit a product feature; it bans passive yield on stablecoin balances and cuts off exchange access to transaction size data, the very mechanism that makes volume-based yield calculable. For Coinbase, this isn’t about principle. It’s about infrastructure. Without it, the revenue stream tied to its USDC distribution agreement with Circle collapses. The exchange formally rejected the latest draft around March 25, marking its second withdrawal from negotiations. CEO Brian Armstrong said in January, “we’d rather have no bill than a bad bill.” Now, the bill has gotten worse — from Coinbase’s perspective. Every revision has narrowed yield carve-outs, not expanded them. And while firms like Andreessen Horowitz back the legislation for the regulatory clarity it offers, Coinbase holds veto-grade influence: its opposition fractures the illusion of industry consensus. Senators need bipartisan votes, and they can’t afford to lose them. The Senate Banking Committee aims for a markup by late April. Missing that risks the entire bill fading into midterm season. Coinbase’s withheld support is the single largest obstacle standing in the way.
The shift follows a coordinated push from Washington, including a call for Senate action from Treasury Secretary Scott Bessent and support from SEC Chairman Paul Atkins. The bill was originally passed by the House of Representatives in July 2025 to divide regulatory oversight between the SEC and the CFTC.
Related Brief 1d ago
cryptocurrency regulation Coinbase backs crypto bill as stablecoin compromise nears, signaling shift from opposition
Coinbase CEO Brian Armstrong now supports the Clarity Act crypto bill, marking a shift from the company's prior stance of neutrality or opposition. The exchange had previously resisted the bill due to unresolved concerns over restrictions on stablecoin yields. Those provisions are now close to resolution, with chief legal officer Paul Grewal stating, "the legislation is almost final." The shift signals a growing alignment between major crypto firms and regulators. U.S. Treasury Secretary Scott Bessent has urged Congress to fast-track the bill, emphasizing the need for structured oversight of digital asset markets. The Clarity Act will establish clear regulatory standards for stablecoins, trading platforms, and compliance frameworks. Its passage is widely seen as a prerequisite for institutional capital to enter the crypto market at scale. Regulatory certainty, not market price, is now the key determinant of investor positioning.
After the Senate Banking Committee rewrote the bill to restrict stablecoin yields, Armstrong had maintained that the company would rather have no bill than a bad bill. The CLARITY Act establishes a federal regulatory framework defining which assets are securities and commodities.
Related Brief 1d ago
crypto regulation Crypto’s $3 Trillion Market Faces U.S. Regulatory Limbo as Senate Stalls Clarity Act
Nearly one in six Americans now hold digital assets, and the global crypto market has reached $3 trillion — yet U.S. regulatory clarity remains stalled in the Senate. The Digital Asset Market Clarity Act, which would extend regulatory oversight to digital assets beyond stablecoins, has not advanced despite urgency from Treasury Secretary Scott Bessent, who called the delay a threat to American competitiveness. In a Wall Street Journal op-ed and Senate testimony, Bessent accused holdout crypto executives of nihilism, arguing they prefer no rules at all to the current proposal. He pointed to the prior passage of the GENIUS Act under President Trump — which regulated stablecoins — as proof that progress is possible. But the Clarity Act faces two critical roadblocks. One is a standoff between crypto firms and banks over whether stablecoin holders can earn passive yield, with a bipartisan compromise from Senators Tillis and Alsobrooks allowing only activity-based rewards. That proposal lacks sufficient support. The other obstacle is political: several pro-crypto Senate Democrats refuse to back the bill unless President Trump’s personal crypto ventures are banned — a demand the White House has rejected. With Senate floor time dwindling and the November midterm elections approaching, Bessent warned that failure to act by May could kill momentum for the rest of the year.
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