Coinbase deal talks revived Senate momentum for a long-delayed crypto market structure bill after lawmakers reached a compromise on stablecoin rewards.
The agreement removes a major obstacle that stalled the CLARITY Act and renewed expectations for a committee vote in May. The proposal now centers on limiting passive stablecoin yield while allowing rewards tied to platform activity.
Stablecoin Reward Dispute Eases
The dispute slowed progress because banks and crypto firms disagreed over stablecoin rewards. Traditional banks pushed for tighter limits, arguing that yield on stablecoin balances could pull deposits away from the banking system and pressure lenders.
Crypto companies argued that a broad ban would hurt consumers and weaken competition in digital finance. Coinbase Global Inc. supported rewards linked to platform use, including payments, transfers, and network activity, instead of passive returns on idle balances.
Coinbase Chief Policy Officer Faryar Shirzad said banks secured restrictions, but crypto platforms preserved the ability for Americans to earn rewards through real usage. The compromise reflects a narrower approach that seeks to protect consumer incentives and address banking sector concerns.
CLARITY Act Gains New Momentum
The CLARITY Act aims to define how the Securities and Exchange Commission and the Commodity Futures Trading Commission oversee digital assets. Supporters say the bill would reduce uncertainty by assigning clearer regulatory authority across crypto markets.
Coinbase Chief Legal Officer Paul Grewal described the legislation as unfinished work after the GENIUS Act passed last year. That earlier law created a stablecoin framework, but it did not settle broader market structure questions.
The breakthrough could allow the Senate Banking Committee to restart action on the bill. Lawmakers had pulled back from a scheduled markup earlier because the stablecoin rewards issue remained unresolved.
May Window Raises Pressure
Political pressure is rising because lawmakers and industry leaders view May as a critical window for passage. Ripple CEO Brad Garlinghouse said at XRP Las Vegas that he expects the CLARITY Act to pass by the end of May.
Garlinghouse has shifted his timeline before, but his latest comments show industry confidence that negotiations are moving forward. Reports suggest supporters want the bill through committee, the Senate floor, and to President Trump before the Memorial Day recess on May 21.
Senator Cynthia Lummis has also warned that the current window may be the last strong chance to pass the bill until 2030. Senator Bernie Moreno has made similar remarks, pointing to rare alignment among the House, Senate, and White House.
The compromise does not end every policy dispute, but it narrows the biggest remaining barrier. If lawmakers hold the coalition together, the Senate crypto bill could move closer to a final vote this month.
