Coinbase told Senate staff it opposes the latest compromise on stablecoin yield rules under discussion for the Senate’s crypto market-structure bill, Punchbowl News reported, citing four people who were briefed on the meeting.
Company representatives raised objections on Monday to language in the compromise that would limit how stablecoin yields can be paid. An earlier draft circulating this week would have barred third parties, including exchanges, from paying yields on stablecoins — a measure intended to address concerns from banks about potential deposit outflows.
Coinbase, one of the largest crypto lobbying voices in the U.S., had withdrawn support for the bill in January, shortly before the Senate Banking Committee indefinitely postponed a scheduled markup. Senators Thom Tillis and Angela Alsobrooks are leading the current bipartisan effort to revive the legislation, and negotiations are ongoing. Coinbase did not immediately respond to requests for comment.
Stablecoin yield provisions have become the central sticking point between crypto firms and banking groups as lawmakers try to set regulatory guardrails. The bill aims to create a framework for crypto oversight, but participants are split over whether and how yields should be permitted.
Banking associations warn that allowing exchanges or other third parties to pay yields could create a loophole in the GENIUS Act, which would prohibit stablecoin issuers from paying yield to holders, and that such a loophole could encourage customers to move funds out of the traditional banking system. Crypto firms counter that yield products are an important revenue stream and argue the banking sector is overstating the systemic risk while seeking to limit competition.
Republicans have urged swift action before the midterm elections, saying a change in Congress could derail progress; the House passed its version, the CLARITY Act, last July. The White House has convened multiple meetings to try to bridge the gap between industry and banks, but no consensus has emerged so far.
Officials and advocates have pushed back against alarmist takes on the issue. A senior advisor to the administration on digital assets dismissed much of the fear and called for calm, while Republican Senator Cynthia Lummis urged lawmakers to reach bipartisan agreement now rather than waiting years for another opportunity.
This report was prepared in line with standard editorial practices and readers are encouraged to verify developments independently.