Coinbase is pushing back again.
In January, CEO Brian Armstrong publicly warned the night before a planned Senate Banking Committee markup that his exchange could not support the proposed legislation — a move that torpedoed the hearing. Now, a revised compromise version of the Digital Asset Market Clarity Act unveiled March 20 by Senators Thom Tillis and Angela Alsobrooks (with White House backing) has reignited the standoff: Coinbase says it still can’t back the bill.
What the compromise does
- Bans rewards paid simply for holding a stablecoin.
- Allows “activity-based” rewards tied to payments or platform use.
- Gives the SEC, CFTC and Treasury 12 months to write clearer rules defining those boundaries.
Why Coinbase objects
Insiders who previewed the draft called the language overly restrictive and vague about what qualifies as activity-based rewards. That vagueness matters to Coinbase: stablecoin-related revenue accounted for roughly 20% of the company’s total earnings in Q3 2025, and the exchange reportedly earned $1.35 billion from stablecoins in 2025 — largely from USDC distribution arrangements with Circle. Armstrong’s public defense is that USDC rewards are not deposit products but revenue sharing from interest on Treasury bills held in reserve.
Political dynamics and stakes
Banks largely secured their priorities in the compromise, and the White House, banks and many crypto firms are increasingly aligned behind the revised text. Treasury Secretary Scott Bessent has urged Senate passage this spring and criticized actors he called resistant to compromise. Coinbase stands apart.
But the bill still faces major hurdles before it can become law:
- It needs a full Senate floor vote requiring 60 votes.
- It must be reconciled with the House’s version passed in July 2025.
- Senator Bernie Moreno warned that if the bill doesn’t reach the Senate floor by May, momentum for crypto legislation could stall until after the midterms.
The numbers underline the urgency: the stablecoin market is about $316 billion, and the regulatory definition of rewards could meaningfully affect major platforms’ business models. With a 12-month rulemaking window and ongoing disagreement from a leading exchange, the clock is running — and Coinbase has made clear it’s not on board with the current deal.
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