Coinbase Withdraws Support from CLARITY Act Over Stablecoin Restrictions

Major cryptocurrency exchange Coinbase has announced that it will no longer support the updated CLARITY Act, a piece of legislation aimed at regulating stablecoins. The company's decision comes as a result of restrictions on stablecoin rewards included in the bill.

The proposed regulations would prohibit exchanges and affiliated companies from paying rewards on stablecoin balances if those payments resemble interest on bank savings accounts. This has sparked concerns within the crypto industry, with Coinbase arguing that such limitations could stifle customer opportunities and revenue streams for market participants.

In a similar scenario in 2026, Coinbase withdrew its support for an earlier version of the bill due to identical concerns. The company's revenue-sharing agreement with Circle, the issuer of USDC, relies heavily on stablecoin-related income, making this decision significant for the exchange and the broader crypto market.