- Sen. Cynthia Lummis expects a Senate Banking Committee markup on the CLARITY Act to be delayed after Coinbase withdrew support.
- The scheduled markup was set for Thursday at 10:00 a.m. Eastern; the decision to pull it lies with Chair Tim Scott.
- Coinbase cited removal of stablecoin rewards and concerns about tokenized stock limits, government access to records, and regulator authority.
- Coinbase reported about $247 million in stablecoin revenue in Q4 and roughly $155 million from blockchain rewards, raising stakes for the company.
- The banking sector argues stablecoin rewards could shift funds from banks, with the Treasury Department estimating a potential $6.6 trillion move out of traditional banking if stablecoins scale widely.
Sen. Cynthia Lummis said she expects the Senate Banking Committee to delay a markup of the CLARITY Act after Coinbase withdrew support, according to an X post by reporter Steven Dennis. The markup was scheduled for Thursday at 10:00 a.m. Eastern, and the decision to pull it rests with Banking Chair Tim Scott.
The withdrawal came after weeks of talks with banking and crypto industry participants over DeFi and stablecoin provisions. Coinbase said the latest draft harmed the industry by eliminating stablecoin rewards and creating other constraints.
Coinbase CEO Brian Armstrong flagged several specific issues in an X post, linking to the updated text and listing concerns about restricted tokenized stocks, broad government access to financial records, and reduced authority for the commodities regulator. In that post, he wrote: “This version would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully we can all get to a better draft.” (See the post here.)
The potential bill change matters financially for Coinbase. The company reported it made about $247 million from stablecoin revenue in Q4 and roughly $155 million from blockchain rewards, according to its Q3-25 shareholder letter.
Banking industry advocates warn that permitting widespread stablecoin rewards could draw large deposits away from banks. The Treasury Department estimated last April that broad stablecoin adoption could pull about $6.6 trillion from the traditional banking system. Lawmakers will weigh these competing pressures as they consider whether to proceed with the markup.
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