Draft Draft of Future Crypto Market Structure Bill Teased, Coinbase Readies Counterproposal
Congressional sources told Crypto In America’s Eleanor Terrett on Friday that the Senate Banking Committee is poised to release its long-awaited draft of the crypto market structure bill (CLARITY Act) as soon as next week.
The disclosure comes amid a growing backlash in the industry, including fresh opposition from crypto exchange Coinbase over recent changes to key provisions of the bill.
Crypto Bill’s Stablecoin Yield Prohibition
Earlier this week Terrett report that the new draft will broadly prohibit platforms from offering yield “directly or indirectly” on stablecoins or assets that act as bank deposits.
Lawmakers will still allow performance-based incentives such as loyalty or promotional rewards, but regulators will be charged with defining what incentives are allowed and developing anti-avoidance rules within a year.
That policy change has already generated sharp criticism from crypto firms and advocates, who say the language favors incumbent banks and risks undermining popular rewards programs that drive consumer engagement.
Market reaction extended to crypto stocks, with shares of Circle (CRCL), the issuer of the USDC stablecoin, it has fallen nearly 20% to the $100 mark during Tuesday’s trading session following reports of possible draft restrictions.
The situation intensified during the week when Coinbase to be informed Senate offices could not support the newly added language.
Coinbase Signals Major Disagreement
Sources he told Terrett that Coinbase’s Global Head of Investment Research, David Duong, said that industry stakeholders are working on a coordinated counterproposal designed to show why targeted changes are needed to protect customers and maintain sustainable rewards programs.
The prospect of next week’s release raises several open questions: whether the Banking Committee will set a date for the official marking of part of the CLARITY Act; how much of the draft may change before the committee votes; and how Coinbase and other industry stakeholders will develop and present their counter proposal.
For now, lawmakers appear to be balancing competing priorities — tightening regulations on yields while leaving room for certain customer benefits — as firms warn that overly broad restrictions could stifle innovation and consumer choice.
Featured image from OpenArt, chart from TradingView.com
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