Coinbase Deal Revives US Crypto Legislation Momentum

A significant development in US crypto legislation has emerged, with a breakthrough agreement between Coinbase Global Inc. and lawmakers on stablecoin yield rewards. The compromise is seen as a crucial step towards passing the CLARITY Act, which aims to clearly define the regulatory roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission across different segments of the digital asset industry.

The debate over stablecoin yield rewards had previously derailed the bill, with traditional banks lobbying for a full ban. However, a bipartisan compromise reached in March allowed activity-based rewards based on payments, transfers, and platform usage, while banning passive yield on idle stablecoin balances.

Ripple CEO Brad Garlinghouse predicts that the CLARITY Act will pass by the end of May, citing the rare alignment between the House, Senate, and White House on crypto policy. This optimism is shared by lawmakers themselves, who have framed the moment as unusually time-sensitive.