Coinbase Says ‘No’ to CLARITY Act, Citing Crypto Restrictions
Coinbase CEO Brian Armstrong said
The comments come a day before the Senate Banking Committee is expected to mark up the CLARITY Act on Thursday, January 15.
The legislation is trying to clarify U.S. digital asset market structure by defining categories such as digital commodities, investment contracts, and payment stablecoins, while dividing oversight between the SEC and CFTC.
Coinbase’ issues with stablecoin rewards
Stablecoin rewards have emerged as a flashpoint in negotiations. Coinbase had reportedly warned lawmakers it may withdraw support for the bill if it restricts yield programs tied to stablecoins like USD Coin.
Coinbase shares in interest income generated from USDC reserves and uses part of that revenue to offer incentives to users, including rewards of roughly 3.5% for Coinbase One customers.
Stablecoin-related revenue may have reached $1.3 billion in 2025, making the issue central to Coinbase’s business model.
Banking groups argue that yield-bearing stablecoins could draw deposits away from traditional banks, while crypto firms counter that banning rewards would stifle innovation and push users toward offshore platforms.
“I’m actually quite optimistic that we will get to the right outcome with continued effort,” Armstrong later posted on X. “We will keep showing up and working with everyone to get there.”
Michael Saylor, executive chairman of Strategy, retweeted Armstrong’s post, showing his own support with the decision.
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