Back
Revised Senate Stablecoin Bill Draft Bars Passive Yield, Keeps Activity-Based Rewards

Revised Senate Stablecoin Bill Draft Bars Passive Yield, Keeps Activity-Based Rewards

According to reports from Capitol Hill negotiations, Coinbase opposes newly revised CLARITY Act language on stablecoin rewards, adding pressure to talks over how yield-like and activity-based programs should be regulated.

Fact Check
The claim is supported by a detailed report from CoinDesk (March 23, 2026) which describes the specific compromise in the Senate's Clarity Act draft. The draft, led by Senators Alsobrooks and Tillis, explicitly distinguishes between prohibited passive yield (interest on balances) and permitted activity-based rewards. The regulatory mandate for the SEC, CFTC, and Treasury to define these incentives within one year is a core component of the bill's implementation timeline as documented in legal analyses of the legislation.
    Reference: 123
Summary

Negotiations over the CLARITY Act have faced another setback after Coinbase reportedly told Senate offices it could not support newly inserted language on stablecoin yield arrangements. The revised draft would restrict programs that resemble bank deposit products while leaving unresolved how activity-based stablecoins and transaction-reward programs would be classified. Industry reaction has been split, with one trade association describing the text as more restrictive than expected and another saying it broadly preserves rewards while blocking interest-like stablecoin offerings. Coinbase’s stance marks a softer reversal from CEO Brian Armstrong’s earlier opposition in January, which had already delayed the bill’s markup. Coinbase stock, trading as COIN, closed Wednesday at $181, down nearly 5% from an opening price above $190.

Terms & Concepts
  • CLARITY Act: A proposed U.S. crypto market-structure bill aimed at setting rules for digital assets, including how certain stablecoin-related activities and rewards programs would be regulated.
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically by being pegged to a fiat currency such as the U.S. dollar.
  • Yield: In crypto, yield refers to returns or rewards earned from holding or using digital assets through interest-like programs or other incentive structures.