The opposition to Coinbase is prompting crypto leaders to write a counter-offering to update the CLARITY Act. The Senate is ready to publish the draft of the bill in April.
Crypto companies claim that the existing bill restricts them in their capacity to provide rewards using stablecoins. The legislation has a robust bipartisan backing, and lawmakers have pressed on to develop the legislation in spite of industry reservations.
Stablecoin Yield Dispute Fuels Industry Pushback
The agreement on stablecoin yield prevents the provision of rewards on dormant balances by crypto companies. Rewards should be activity-based and should not be similar to traditional bank interest. Coinbase declined the deal, claiming that the new rules were of great concern.
Crypto journalist Eleanor Terrett published information that a copy of the draft bill had been seen by insiders, which indicated that the legislation would prevent platforms from providing yield directly or indirectly on holding stablecoins.
She also added that the draft is a break with the past White House deliberations. The economic equivalence criterion was also unclear enough to create concerns that the future regulatory bodies may be more restrictive in their interpretation, which may influence the general crypto ecosystem.
Coinbase Global Head of Investment Research David Duong affirmed that the leaders of the industry are discussing a counterproposal. This is to correct the bill to protect consumers and preserve the sustainability reward programs.
Senators Seek Compromise Amid Industry Concerns
The office of Senator Thom Tillis verified that the draft bill will be released next week, including the rewards and yields of stablecoins, and that the stakeholder talks are still ongoing. Senator Tillis and Senator Angela Alsobrooks were able to agree with the white house to take the tension between banks and crypto companies with regard to rewards.
Senator Tim Scott hailed the move forward to the bill, hailing that Democrats and Republicans are also discussing the terms that can be agreed upon to push the CLARITY Act forward. Even though the compromise gives it momentum, analysts warn that it does not guarantee Senate passage. The bill draft has to go through committees, have a complete Senate vote, pass through reconcilers, and be supported by the president.
Broader Challenges for the CLARITY Act
The CLARITY Act sailed through the House by a bipartisan vote in July 2025. It seeks to divide the regulation between the CFTC and SEC and categorize some blockchain assets as commodities. Nevertheless, rules of stablecoin yields are a major thorn in the flesh.
According to Terrett, decentralization of finance regulation in conjunction with imposing Anti-Money Laundering regulations complicates the legislation process. The representatives of the banks are scrutinizing the draft to confirm that there is regulatory compliance. On March 25, 2026, Washington said that it is prohibited to earn yield by holding stablecoins and that other options are being created.
There are several challenges to the CLARITY Act, even as there is an increase in consensus. Cryptocurrency companies keep lobbying for better rules and regulations on incentives and decentralized finance, whereas lawmakers strike a balance between innovation and economic stability. The proposed Senate bill on drafting will point to the future direction of the crypto industry.
