The CLARITY Act, a proposed US bill regulating crypto, is gaining momentum in the Senate. A recent update suggests that lawmakers have reached an agreement in principle and are working towards a potential final vote by May.
According to internal market views from Coinbase, the biggest sticking point is stablecoin yield. The latest proposal aims to ban passive rewards, meaning users won't earn just by holding stablecoins. However, it still allows limited incentives tied to actual usage, like payments.
This change could significantly impact Coinbase's revenue, as the company generates around $1.35 billion from reserves backing USDC, a stablecoin that has been subject to this proposed ban.