May 1 - Coinbase announced Friday a deal has been reached on a key provision in major crypto legislation, potentially clearing the path for the bill to advance in the U.S. Senate. The bill had stalled over bank opposition to allowing stablecoin issuers and crypto firms to offer yield-bearing rewards, which banks argue could drain deposits.
Coinbase argued such rewards are essential for recruiting customers and that banning them would be anticompetitive. Faryar Shirzad, Coinbase's Chief Policy Officer, said on X, "In the end, 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."
The compromise, finalized by Senators Thom Tillis and Angela Alsobrooks, includes a broad prohibition on rewards offered "in a manner that is economically or functionally equivalent to the payment of interest or yield on an interest-bearing bank deposit." The text also directs regulators to propose new stablecoin rules, including a disclosure regime and a list of permissible reward activities.
The proposed Clarity Act aims to create clear regulations to promote cryptocurrency adoption. President Donald Trump, who courted crypto cash on the campaign trail, has prioritized crypto reform during his second administration.