Coinbase Executives Backs CLARITY Act Even As Stablecoin Rewards Take A Hit

• Coinbase CEO Brian Armstrong pushed legislators to markup, despite the new CLARITY Act limiting stablecoin payouts.
• Coinbase's policy team said the measure restricts stablecoin interest-like yield but protects activity-based incentives connected to genuine platform use.
• After months of discussions, Senators Tillis and Alsobrooks reached a bipartisan agreement to hold a Senate Banking Committee markup on May 11 week.

Coinbase (COIN) CEO Brian Armstrong said on Friday, “Mark it up”, despite the new Clarity Act text banning stablecoin rewards.

Armstrong reposted on X, sharing Faryar Shirzad, Chief Policy Officer of Coinbase, where he said, “much of this debate was based on imagined risks, not real evidence, nor was it based on a real understanding of how crypto actually works.” 

However, Shirzad explained, “the banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of crypto platforms and networks.”

Coinbase’s stock closed in the green on Friday. On Stocktwits, retail sentiment around COIN remained in the ‘neutral’ zone, while chatter stayed at ‘high’ levels over the past day.

Senators Strike Deal On Stablecoin Yield

Sens. Thom Tillis (R) and Angela Alsobrooks (D) led a bipartisan agreement to move forward on the Digital Asset Market Clarity Act on Friday, releasing a compromise version of text that restricts how stablecoin rewards can be structured, but leaves room for certain incentive models to continue, according to reports.

Negotiations between crypto businesses and banking lobbyists have been ongoing for months, but Tillis and Alsobrooks have reportedly concluded the arrangement, clearing up a major hurdle and setting the stage for a Senate Banking Committee markup as early as the week of May 11.

The measure, in particular, forbids incentives provided “in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit.” 

The Act also requires federal authorities to provide a clear disclosure regime and specify authorized incentive schemes. This includes the need for transparent information about pay and clear rules for offering incentives without risk. 

Industry Praises Possibility Of Markup

Crypto industry players have openly praised the deal, saying it achieves a balance between consumer protection and innovation. The Blockchain Association noted that fixing the yield on the stablecoin challenge clears the way for a Senate Banking Committee markup and moves forward on wider crypto legislation. Meanwhile, the Digital Chamber called the revised phrasing progress, and said it would continue to press for incentive systems that foster utility and competitiveness.

With the compromise draft now made public, the focus switches to the impending markup of the Senate Banking Committee, which may chart the course for the next phase of federal crypto legislation in the U.S.

Read also: Ethereum ‘Needs To Wait’ Says Michaël van de Poppe, Warns Of Downside Despite Institutional Buying

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