The CLARITY Act once again faces another setback with Coinbase, a major cryptocurrency shareholder, opposing the latest version of the stablecoin return settlement. This comes as crypto leaders are said to be divided over the stablecoin’s return deal, which they described as “restrictive”.
CLARITY Act suffers setback as Coinbase opposes Stablecoin deal
According to Punchbowl News, Coinbase has informed the Senate offices that it cannot support the latest version of the stablecoin return settlement. This represents a setback given Coinbase’s role in shaping crypto policies thus far.
It should be noted that the cryptocurrency exchange opposed a previous version of the CLARITY Act due to the stablecoin yield provision in January, when the Senate Banking Committee scheduled an increase in the cryptocurrency bill. The commission eventually postponed the tokenization amid opposition from Coinbase and other stakeholders in the cryptocurrency space.
This issue of stablecoin rewards remains a major obstacle to the progress of the cryptocurrency bill. There was optimism last week following reports that the White House had reached an agreement with key leaders in the Senate, Senators Thom Tillis and Angela Alsobrooks, to settle the conflict between the banking and cryptocurrency industries over the provision of stablecoin yield.
However, this optimism is quickly fading again as crypto stakeholders, including Coinbase, disagree with the latest version of the bill. As CoinGape reported, he described the leaders of cryptocurrencies A scripting language that produces stablecoins In the CLARITY Act as “restricted”.
This clause imposes a broad ban on stablecoin rewards, limiting the payout to activity-based rewards that are not equivalent to interest on bank deposits. One cryptocurrency stakeholder also noted that the latest draft was different from what the two sides had previously discussed with the White House. They added that some provisions are ambiguous and that future regulators could interpret them more restrictively.
These recent developments with the CLARITY Act have also sparked bearish sentiment in the market. It is worth noting, Crypto stocks COIN and CRCL suffered major outages yesterday, as yield provision could negatively impact Coinbase and Circle’s revenues.
Cryptocurrency leaders are divided over the bill
According to A Cryptocurrency in America reportcrypto policy leaders are divided over the latest stablecoin payout language, which largely limits payout to activity-based rewards only. A conference call was reportedly held between representatives of cryptocurrency exchanges, fintechs and venture capital firms yesterday about the draft text, with some calling it unworkable while others defended it.
This came after the latest text was reviewed by cryptocurrency representatives who went to Capitol Hill on Monday. Meanwhile, as CoinGape reported, Bank representatives reviewed the text of the recent CLARITY Act yesterday.
A banking representative who reviewed the text told Crypto in America that the stablecoin language appears to reflect the compromise that senators and the White House sought to achieve. The Senate has yet to release the latest draft, but it could become public as early as today, according to Crypto in America.
With key stakeholders opposing the latest draft text, cryptocurrency traders are once again trimming their bets on US President Donald Trump signing the cryptocurrency bill into law this year. Polymarket data shows a 61% chance the bill will pass this year, down from 71% about five days ago.
