Coinbase Opposes Delay of Clarity Act
The Senate has prioritized the Clarity Act after the Russia sanctions bill, likely delaying the legislation until after the recess.
Coinbase CEO Brian Armstrong publicly opposed the Senate draft in January, stating, "I would rather not have a bill than a bad bill," which directly led to the postponement of the banking committee's markup; the opposition focused on restrictions on stablecoin rewards, as this business constitutes a significant portion of Coinbase's revenue.
After months of negotiations, the version was changed to prohibit passive interest holdings while retaining active rewards. Coinbase then shifted to support and called for passage, but the initial opposition consumed a critical window, and the current agenda is occupied by geopolitical issues and nominations, further delaying regulatory certainty for the industry.
Source: Public Information
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As the largest compliant exchange in the U.S., Coinbase's revenue related to stablecoins (especially USDC distribution and rewards) has long accounted for a significant proportion of its subscription and service income. Armstrong's public withdrawal of support in January directly triggered the Senate Banking Committee to cancel the originally scheduled markup, leading to dissatisfaction among some companies and legislators in the industry, who felt that the largest player withdrawing at the last moment undermined consensus.
In terms of capital pathways, Coinbase is deeply tied to the stablecoin economy through its revenue-sharing mechanism with Circle; any restrictions on passive or deposit-like earnings would directly impact its customer acquisition and retention model. Although the subsequent compromise version retained active rewards, it introduced a broad statement of "economically or functionally equivalent to bank deposit interest," which effectively narrowed the operational space, indicating that banking lobbying gained the upper hand in the tug-of-war.
Similar cases can be seen around 2022, where several exchanges adjusted their positions at critical points in regulatory legislation due to their own business interests, resulting in an overall process blockage. Currently, the legislative window is being squeezed by geopolitical agendas, and the wavering stance of a single large player amplifies the collective action dilemma.
This event essentially reflects capital concentration: when the business model of a leading platform is highly tied to legislative details, its veto power effectively becomes a bottleneck for industry legislation, as the mechanism allows the "largest stakeholders" in regulatory lobbying to have disproportionate agenda influence.
ABAB News · Cognitive Law
Veto power of the leading player outweighs industry consensus
Business model determines legislative stance
Once the window is missed, the cost is borne by the entire industry