Coinbase reversed its opposition to the CLARITY Act after Treasury Secretary Scott Bessent urged Congressional action, marking the company's third position change on the crypto legislation. Coinbase had twice withdrawn support in early 2025, citing provisions in the Tillis-Alsobrooks compromise draft that ban passive yield on stablecoin balances and restrict transaction data access—changes that could cost the exchange an estimated $800 million annually from its $1.35 billion stablecoin revenue stream tied to its USDC distribution agreement with Circle. The reversal comes as the Senate Banking Committee targets a late April 2025 markup amid warnings that missing a May deadline could doom the bill to midterm politics, with Coinbase's opposition previously identified as the single largest obstacle to a committee vote.
Coinbase's withdrawal of support for the CLARITY Act
- ▪Coinbase's March 2025 withdrawal from the CLARITY Act marked its second withdrawal from the legislation
- ▪Punchbowl News reported Coinbase's second formal withdrawal from the CLARITY Act around March 25, 2025
- ▪The Tillis-Alsobrooks draft of the CLARITY Act restricts access to transaction size data used to calculate stablecoin rewards
- ▪The Tillis-Alsobrooks draft of the CLARITY Act bans passive yield on stablecoin balances
- ▪Brian Armstrong confirmed that talks between Coinbase and Senate offices regarding the CLARITY Act are ongoing
- ▪Brian Armstrong stated regarding the CLARITY Act that Coinbase would rather have no bill than a bad bill
- ▪Coinbase told Senate Banking Committee offices it has significant concerns about the Tillis-Alsobrooks compromise draft of the CLARITY Act
- ▪Coinbase formally told Senate offices it cannot support the latest CLARITY Act draft in March 2025
- ▪Coinbase CEO Brian Armstrong first pulled support for the CLARITY Act in January 2025
Financial impact of stablecoin yield restrictions on Coinbase
- ▪Coinbase reported 1.35 billion dollars in stablecoin revenue in 2025
- ▪Provisions eliminating stablecoin yield in the CLARITY Act could strip Coinbase of an estimated 800 million dollars in annual revenue
- ▪Stablecoin revenue represents close to 20 percent of Coinbase's total 2025 revenue
Industry divisions and legislative timeline pressures
- ▪Senator Bernie Moreno warned that missing May 2025 risks losing the CLARITY Act to midterm season entirely
- ▪An industry call in late March 2025 reportedly featured sharp disagreements over how to proceed with the CLARITY Act
- ▪Andreessen Horowitz argued that the institutional legitimacy the CLARITY Act provides outweighs stablecoin revenue concessions
- ▪Andreessen Horowitz publicly supported the CLARITY Act even in its current form
- ▪The Senate Banking Committee markup target for the CLARITY Act remains late April 2025
Perspective of Andreessen Horowitz
- ▪Andreessen Horowitz believes the institutional legitimacy provided by the CLARITY Act justifies accepting restrictions on stablecoin yield
Perspective of Senate Banking Committee leadership
- ▪Senator Bernie Moreno believes failure to pass the CLARITY Act by May 2025 will result in the bill being lost to midterm election politics
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