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CLARITY Act Stalls as Coinbase, White House and Banks Negotiate Stablecoin Yields

Talks now focus on securing terms that address community-bank concerns after a postponed Senate markup.

Overview

  • The Senate Banking Committee delayed its planned Jan. 15 markup shortly after Coinbase withdrew support over DeFi limits, tokenized equities, and a ban on sharing stablecoin yield.
  • Brian Armstrong said discussions with the administration are "super constructive" and that Coinbase is working on a deal with banks, with an emphasis on community institutions.
  • A draft provision barring platforms from sharing stablecoin yield remains the core dispute, with banks warning of deposit flight and Coinbase arguing it would harm users and competition.
  • Reports that White House backing could depend on a bank-friendly yield agreement are disputed, as Armstrong denies a rift with the administration.
  • Armstrong is meeting bank leaders and policymakers in Davos this week and has signaled revised bill language or a new markup could arrive within weeks.