Coinbase Pushes Back on Stablecoin Yield Terms in Senate Crypto Bill

A proposal that circulated earlier this week would have barred third parties, including exchanges, from paying stablecoin yields to users.

Stablecoin News

Coinbase told Senate lawmakers Monday that it has concerns over stablecoin yield language in the latest compromise version of the Senate's crypto market structure bill, Punchbowl News reported Wednesday, citing four people briefed on the meeting. The exchange's opposition adds a new obstacle to a bill that has already faced repeated delays.

A proposal that circulated earlier this week would have barred third parties, including exchanges, from paying stablecoin yields to users. The provision was framed as a response to banking groups' concerns about deposit flight if consumers shift funds toward yield-bearing

. Coinbase's prior withdrawal of support for an earlier version of the bill in January preceded the Senate Banking Committee's indefinite postponement of a markup vote.

Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks are leading the current round of negotiations. Senator Alsobrooks said previously that the compromise may leave both the crypto industry and banks dissatisfied.

The White House has hosted at least three meetings between crypto and banking representatives in an attempt to broker an agreement, but no deal has been reached. Banking groups have argued that stablecoin yield payments by exchanges exploit a gap left by the GENIUS Act, which prohibited stablecoin issuers from paying yield directly to holders.