Coinbase is opposing a new compromise in the Senate crypto bill over stablecoin yield, according to a report cited by Cointelegraph. The dispute focuses on whether exchanges and other third parties should be allowed to offer stablecoin rewards. That issue has already delayed earlier efforts to move the bill forward.
The report said Coinbase representatives told Senate lawmakers on Monday that they had concerns about the latest language on stablecoin yield. Punchbowl News cited four people briefed on the meeting. Coinbase did not immediately respond to a request for comment.
The latest push comes as lawmakers try to move broader crypto legislation in the United States. Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks are leading the current effort. However, talks are still ongoing.
Coinbase stablecoin bill fight centers on yield
The main dispute in the Coinbase stablecoin bill debate is whether third parties such as exchanges can pay yield on stablecoins. An earlier proposal reportedly sought to stop those payments. Lawmakers considered that step to address concerns raised by banks.
Banking groups argue that exchange-paid stablecoin rewards could create a loophole in the GENIUS Act. That law barred stablecoin issuers from paying yield directly to holders. In the banks’ view, allowing exchanges to do it anyway could pull deposits away from the traditional banking system.
Meanwhile, the crypto industry has pushed back. Crypto firms say the risk is overstated. They also argue that banks are trying to block competition. Since stablecoin yield is an important part of exchange activity, the issue has become one of the biggest points of tension in the current US crypto regulation debate.
Senate crypto bill talks remain under pressure
This is not the first time the issue has slowed progress. In January, Coinbase withdrew support for the bill. Shortly after that, the Senate Banking Committee indefinitely postponed a markup that would have advanced the measure.
Since then, officials have continued trying to reach a compromise. The White House has hosted at least three meetings between banking and crypto groups. However, those talks have not produced a final agreement.
That is why the current Senate crypto bill negotiations remain fragile. Lawmakers are trying to write rules for how regulators should handle the crypto market. Yet the fight over stablecoin yield continues to block a deal.
CLARITY Act and crypto legislation face a narrow window
The timeline now matters for this crypto legislation. Republicans want to pass the bill before the midterm elections. If control of Congress changes, momentum could fade.
The House already passed its version of the measure, called the CLARITY Act, in July. Still, the Senate version has not moved because of the unresolved yield language. A related report also said the chances for the CLARITY Act in 2026 are “extremely low” if it does not pass before April.
Public comments also showed the pressure around the bill. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, wrote on X that there was “plenty of uninformed FUD circulating on social media this week.” He added, “It’s all going to work out. Bullish.”
Stablecoin rewards remain central to US crypto regulation
Senator Cynthia Lummis also commented on the issue on Wednesday. She wrote on X that “we can’t wait until 2030 for another chance” to pass the crypto bill. She also said,
“Bipartisan compromise is necessary for the Clarity Act to pass.”
Lummis added that lawmakers were working “around the clock to ensure stablecoin rewards are protected and to prevent deposit flight from community banks.” That statement showed the two priorities now shaping the debate.
At the same time, Angela Alsobrooks said the compromise bill could leave both banks and crypto firms unhappy. That comment reflects the current state of the talks. For now, the debate over Coinbase, stablecoin yield, and the Senate crypto bill remains unresolved.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 26, 2026 • 🕓 Last updated: March 26, 2026
