Coinbase May withdraw support for the CLARITY Act due to the ban on stablecoin rewards
Svmuu News: U.S. cryptocurrency exchange Coinbase is stepping up pressure on U.S. lawmakers to oppose proposals to ban certain decentralized finance provisions in a major cryptocurrency bill known as the CLARITY Act.Bloomberg reported, citing sources familiar with the matter, that if the bill restricts stablecoin issuers from offering rewards on platforms such as cryptocurrency exchanges, the Coinbase, may reconsider its support for the bill. Banking groups fear that stablecoin rewards and yield products could siphon trillions of dollars away from the traditional banking system.The GENIUS Act, passed in July 2025, prohibits stablecoin issuers from offering interest or yields to holders, but does not explicitly ban third parties, such as crypto exchanges, from providing incentives.The banking industry is currently attempting to close this loophole through the CLARITY Act. Stablecoins have become a major source of revenue for the "Coinbase," contributing nearly $247 million in revenue in the fourth quarter of 2024. The U.S. Senate Banking Committee is expected to discuss this issue at its meeting this Thursday.
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