Coinbase is reportedly pushing back against a new compromise on stablecoin yields being considered for inclusion in a US Senate crypto market structure bill.
According to Punchbowl News, Coinbase representatives raised concerns during a meeting with Senate lawmakers on Monday, specifically objecting to language in the revised proposal that addresses how stablecoin yields would be handled.
An earlier version of the proposal would reportedly bar third parties, including exchanges, from offering yields on stablecoins—a move aimed at addressing banking sector concerns about potential deposit outflows.
Coinbase, one of the most influential crypto lobbying firms in the US, had already withdrawn its support for the bill in January, shortly before the Senate Banking Committee postponed plans to move the legislation forward.
The latest push to advance the bill is being led by Thom Tillis and Angela Alsobrooks, with negotiations still ongoing. Coinbase has not yet responded to requests for comment.
The debate over stablecoin yields has become a major sticking point in the Senate’s crypto market structure bill, as tensions grow between the crypto industry and traditional banking groups.
The White House has reportedly hosted multiple meetings in an attempt to broker a compromise, though no agreement has been reached so far.
Banking groups argue that allowing exchanges to offer stablecoin yields creates a loophole in the GENIUS Act—which prohibits issuers from paying yield—and could lead to significant deposit outflows from the traditional banking system.
On the other hand, crypto firms contend that stablecoin yields are a core part of their business model. They argue that the risks are overstated and accuse banks of trying to stifle competition.
Republicans are aiming to pass the legislation before the upcoming midterm elections, which could shift the balance of power in Congress and stall progress. Meanwhile, the House has already advanced its own version of the bill, the CLARITY Act.
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, dismissed concerns circulating online, saying there was “plenty of uninformed FUD” but expressing confidence that the situation would be resolved.
At the same time, Cynthia Lummis emphasized the urgency of passing the legislation, stating that lawmakers cannot afford to delay until the end of the decade. She added that bipartisan cooperation is essential to move the CLARITY Act forward, with efforts focused on protecting stablecoin rewards while addressing concerns about deposit flight from community banks.
