Coinbase Might Withdraw Support for CLARITY Act

Coinbase Increases Pressure on US Legislators

Coinbase, the cryptocurrency exchange platform, may reconsider its support for the CLARITY Act if it restricts stablecoin issuers from offering rewards on exchange platforms. According to a Bloomberg report, the company is expressing concern about a potential ban on rewards for stablecoin users, which could significantly impact the revenues that exchanges generate from these products.

The CLARITY Act, set to be discussed on Thursday during a review session, is seen as an important step in regulating the cryptocurrency market. However, some banking groups have warned that banning rewards could lead to substantial losses for the traditional banking system. At the same time, the crypto community, represented by the group Stand With Crypto, has sent over 135,000 emails to senators urging them to protect rewards offered for stablecoins.

A ban on rewards could profoundly affect Coinbase, which has generated nearly $247 million from stablecoins, in addition to $154.8 million from blockchain rewards. Nevertheless, supporters of the banking industry believe that allowing stablecoin rewards could have an even greater impact on the banking sector, estimating that widespread adoption of stablecoins could draw $6.6 trillion away from the traditional banking system.

Additionally, it is estimated that legislation regarding the structure of the crypto market may not come into effect until 2029, and discussions surrounding the CLARITY Act could be delayed due to the 2026 elections.