Coinbase rebuffs Digital Asset Market Clarity Act, stablecoin rewards curbs

Coinbase says it will not back the revised “Digital Asset Market Clarity Act,” signaling continued friction in US stablecoin regulation. The updated bill, announced March 20 by Senators Thom Tillis and Angela Alsobrooks with White House support, keeps a key compromise: it bans rewards paid merely for holding a stablecoin, but allows “activity-based” rewards tied to payments or use of a platform. The issue for Coinbase is ambiguity. Sources familiar with the draft say it remains unclear what qualifies as activity-based rewards, leaving the industry exposed while regulators catch up. The SEC, CFTC and Treasury would get 12 months to define the rules more precisely—timing that Coinbase and market participants may see as insufficient certainty. Coinbase opposition is also tied to revenue exposure. Stablecoin-related revenue made up about 20% of Coinbase’s total earnings in Q3 2025, and the exchange reportedly earned $1.35B from stablecoins in 2025, largely via USDC distribution arrangements with Circle. Coinbase CEO Brian Armstrong previously argued that USDC reward economics are not a “deposit product,” describing it instead as revenue sharing from interest on Treasury bill reserves. Regulatory momentum is present: Treasury Secretary Scott Bessent criticized “recalcitrant actors” resisting the compromise and urged Senate action this spring. Still, the bill faces procedural hurdles, including a full Senate floor vote requiring 60 votes and reconciliation with the House-passed version from July 2025. Senator Bernie Moreno warned the bill could go dark if it misses a May Senate floor deadline. As markets track headlines around the Digital Asset Market Clarity Act, BTC is trading around $70,749 at the time of reporting. Coinbase’s refusal keeps uncertainty elevated around stablecoin reward structures and compliance timelines.