Coinbase has raised new concerns over the Senate’s latest stablecoin yield compromise, keeping pressure on a crypto market structure bill that lawmakers still want to move forward.
Summary
- Coinbase rejected revised Senate language that could block exchanges from paying rewards on stablecoin balances.
- Banking groups say stablecoin rewards may pull deposits away from banks and weaken existing rules.
- Lawmakers and White House officials continue talks as pressure builds to move the bill forward.
Reports on March 26 said the exchange told Senate offices it could not support the new language on yield payments, keeping stablecoin rewards at the center of the debate.
Punchbowl News, as cited by several outlets, reported that Coinbase representatives met Senate lawmakers on Monday and pushed back on the revised draft. The reported concern focused on language that could stop third parties, including exchanges, from paying rewards on stablecoin balances.
That issue matters because stablecoin rewards remain a key product for crypto platforms. Banking groups have argued that exchange-paid rewards could draw deposits away from banks and leave a gap around the GENIUS Act, which already bars issuers from paying yield directly to holders.
Senators Thom Tillis and Angela Alsobrooks have led the latest Senate talks on a compromise. Earlier this month, Alsobrooks said lawmakers should not let perfect block progress and said both crypto firms and banks may leave the process “a little bit unhappy.”
The White House has also tried to bridge the gap. Reuters reported in late January that the administration planned meetings with banking and crypto groups, and later reporting showed the White House held at least a third meeting in February as the sides kept working on stablecoin reward terms.
The latest clash comes after a setback in January. Reuters reported that the Senate Banking Committee postponed work on the bill after Coinbase withdrew support and objected to earlier draft language tied to stablecoin rewards.
Lawmakers still face a tight calendar even though the House already moved first. The House passed the CLARITY Act on July 17, 2025, and the Senate now needs to settle its own version before any final package can move ahead.
Lummis and White House advisers signal talks continue
Senator Cynthia Lummis said on X that “bipartisan compromise is necessary” for the CLARITY Act to pass. She added that lawmakers are working to protect stablecoin rewards while also trying to prevent deposit flight from community banks.
White House digital assets adviser Patrick Witt also tried to calm market worries. He wrote that there was “plenty of uninformed FUD” around the issue, a sign that talks remain active even as Coinbase keeps pressing its case.