Coinbase confirms deal on stablecoin yield provision in Clarity Act

Coinbase announced Friday that lawmakers reached a deal on the key stablecoin yield provision blocking the Digital Asset Market Clarity Act. The exchange posted confirmation on X, crediting bipartisan efforts resolving the impasse.

The compromise resolves banking industry opposition to reward programs luring deposits from traditional accounts. Exchanges preserve activity-based incentives like loyalty and promotional rewards while banning passive interest equivalents. Coinbase Chief Legal Officer Paul Grewal detailed the terms, emphasizing protections for genuine platform usage rewards.

Negotiations involved White House, Treasury, Senators Thom Tillis and Angela Alsobrooks, plus industry stakeholders. The White House confirmed facilitation of final language balancing innovation and financial stability.

The provision stalled progress since January when CEO Brian Armstrong withdrew support over perceived banking favoritism. Banks demanded curbs on yield-bearing stablecoins competing with insured deposits paying below 5%.

Chairman Tim Scott schedules Senate Banking markup for May following the resolution. The bill passed House in 2025 with 300-plus bipartisan votes after similar compromises.

Clarity Act assigns CFTC oversight for digital commodities, spot markets, and non-security tokens. SEC retains securities jurisdiction with clear delineation rules.

Disclosure regimes cover advertising, insider trading, and project reporting. Regulators gain 12 months to define permissible activities via notice-and-comment.

Industry groups welcomed the framework promoting adoption. Blockchain Association emphasized innovation protections against overregulation.

Coinbase views the deal as essential for USDC growth and network participation. Circle shares rose 12% on the news, reflecting stablecoin optimism.

Remaining issues include DeFi safeguards and developer exemptions. Republicans seek unified support before markup to ensure floor passage.

The agreement positions summer enactment amid Trump administration priorities. Treasury Secretary Scott Bessent endorsed acceleration in public remarks.

Passage unlocks tokenized assets and institutional products. Platforms prepare compliant operations with enhanced custody standards.

The development caps intense lobbying between crypto firms and banks. White House facilitated final terms after multiple rounds.

Market reaction boosted Bitcoin above $95,000. Analysts project trillions in tokenized market cap post-legislation.