Coinbase Opposes CLARITY Act Over Stablecoin Yield Concerns

Coinbase has expressed its reservations about the latest iteration of the CLARITY Act, which aims to regulate the crypto market structure.

The exchange has informed Senate lawmakers that it cannot support the new wording related to stablecoin yields. This move is seen as a significant hurdle for the bill's passage in the upper chamber.

According to industry sources, the core dispute revolves around whether crypto exchanges can pay yield to users holding stablecoins. The banking groups argue that this would create a loophole, while the crypto lobby counters that these risks are overstated and banks are trying to block competition.

The White House has hosted several meetings in an attempt to find common ground between the two sides. However, no deal has been reached yet.