Coinbase Rejects Senate’s Stablecoin Yield Compromise: Crypto Legislation in Limbo

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Coinbase Rejects Latest Senate Compromise on Stablecoin Yields

Coinbase, one of the biggest cryptocurrency companies in the U.S., has apparently declined to back a recent attempt to create rules for how stablecoins earn interest.

If this rumor is accurate, it could further complicate the Senate’s ongoing attempts to pass major legislation regulating the cryptocurrency market.

At a meeting on Monday, the exchange’s representatives expressed worries about the recently proposed wording for stable yield products.

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A bipartisan group of senators, including Thom Tillis and Angela Alsobrooks, created these rules as a way to find common ground. They address worries from traditional banks about stablecoins that offer interest.

Stalling major legislation 

The plan for the stablecoin faced a major setback earlier this year when Coinbase stopped supporting the original proposal.

The hold-up happened because there were major disputes about how stablecoin interest rates should be handled and overseen by regulators.

Traditional banks are strongly against the new cryptocurrency rules. They worry that stablecoins offering interest could lead people to move their money out of traditional banks.

In January, Coinbase CEO Brian Armstrong spoke out against a proposed bill just before it was to be debated by the Senate Banking Committee. Because the largest US cryptocurrency exchange opposed the bill, lawmakers had to revise it to try and reach an agreement.

In recent days, several important senators have expressed optimism, suggesting a deal on stablecoins is close to being finalized.

It’s politically challenging to pass laws that Coinbase doesn’t support. The company is a major financial contributor to Fairshake, a super PAC that’s been gaining influence.

Fluid negotiations

Even though things hit a snag, the proposed law isn’t necessarily off the table. Punchbowl News reports that the situation is still changing, and discussions between the exchange and lawmakers are ongoing.

Pedersen observed that the challenges Coinbase is facing now aren’t as strong as the firm resistance Armstrong showed earlier in the year.

Despite ongoing efforts, those involved haven’t yet reached an agreement, according to reports. Monday’s meeting showed they still have work to do.

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2026-03-25 22:01