Coinbase Pushback Slows CLARITY Act Progress Again

The CLARITY Act is facing another obstruction because Coinbase is now against the version of the stablecoin yield compromise. This shows that there are differences within the crypto industry about how to regulate stablecoin rewards.

Coinbase has informed offices of the U.S. Senate that it does not agree with the version of the bill. This is significant because Coinbase has helped shape crypto policy discussions in the past. The company had concerns in January, which slowed down the progress of the bill.

The main issue is with the rules about stablecoin rewards. The current version of the bill says that yield can only be given for activity-based rewards, and it cannot be like the interest you get from a bank. Many crypto leaders think this is too limiting. They are worried that regulators might interpret it even more strictly later.

There was some hope recently because it seemed like the White House had found common ground with some senators. This hope is gone now because people in the industry still do not agree. Some people even said the proposal is not going to work, while others still support it.

This uncertainty is also affecting the market. Stocks like Coinbase and Circle have fallen a lot, which shows that investors are worried about how the bill might affect these companies.

Meanwhile, the prediction platform Polymarket shows that people do not think the bill will pass this year. Because of all the disagreements, the future of the CLARITY Act is still uncertain.

Source: X.com

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