In January, Coinbase CEO Brian Armstrong posted on X the night before a planned Senate Banking Committee markup, declared his company could not back the bill, and forced the hearing off the calendar.
Now, after lawmakers unveiled fresh compromise language for the Digital Asset Market Clarity Act, the exchange is signaling the same resistance.
A Bill That Keeps Hitting Walls
Senators Thom Tillis and Angela Alsobrooks announced the revised text March 20, with White House backing. The compromise bans rewards paid simply for holding a stablecoin but allows activity-based rewards tied to payments or platform use.
Banks got what they wanted most. Crypto platforms got a narrow lane — though what qualifies as activity-based rewards remains, according to sources familiar with the draft, frustratingly vague.
The SEC, CFTC, and Treasury would have 12 months to define the rules more precisely, a timeline that offers little immediate comfort to the industry.
Crypto insiders who attended a closed-door Capitol Hill session Monday said the language was overly restrictive. One person familiar with the industry’s first look described the opening impression as a letdown.
What’s At Stake For Coinbase
The numbers behind Coinbase’s opposition are not hard to find. Stablecoin-related revenue made up roughly 20% of the company’s total earnings in the third quarter of 2025.
Reports say the exchange pulled in $1.35 billion from stablecoins in 2025 alone, most of it from USDC distribution arrangements with Circle.
Armstrong’s public argument has been that USDC rewards are not a deposit product — they are revenue sharing from interest earned on Treasury bills held in reserve.
Treasury Sec. Scott Bessent has already criticized what he called recalcitrant actors resisting compromise, urging Senate passage this spring. Banks, other crypto firms, and the White House are increasingly aligned. Coinbase is not.
A Fragile Timeline With New Complications
The bill still faces multiple hurdles before it becomes law, including a full Senate floor vote requiring 60 votes and reconciliation with the House-passed version from July 2025.
Senator Bernie Moreno has been direct: if the bill does not reach the Senate floor by May, crypto legislation risks going dark until after the midterm cycle.
The stablecoin market sits at $316 billion. For now, the clock is running — and Coinbase has made clear it is not ready to get behind the deal.
Featured image from Quakers and Business, chart from TradingView
