The U.S. crypto market structure bill — the CLARITY Act — is facing serious trouble as tensions escalate between the White House and Coinbase over stablecoin yield rules. The bill, which aims to clarify SEC and CFTC oversight and regulate stablecoins, tokenized assets, and DeFi, is now stalled.
The Core Dispute: Stablecoin Yields
Traditional banking groups want to restrict crypto platforms from offering yields on stablecoins like USDC. Bank of America CEO Brian Moynihan warned that yield-bearing stablecoins could shift up to $6 trillion in deposits away from banks, hurting lending and credit availability. Coinbase currently pays around 3%–4% on USDC deposits — a key user incentive and revenue source. The exchange argues that restricting yields would harm the crypto community, limit competition, and damage innovation.
Coinbase Walks Away, White House Fires Back
Earlier this week, Coinbase CEO Brian Armstrong publicly withdrew support for the CLARITY Act, calling the draft a "bad bill." He said he would rather have no law than a harmful one, accusing banks of protecting outdated business models. The White House was furious, calling the move a "unilateral rug pull." Officials stressed that the CLARITY Act is "President Trump's bill," not a company's decision, and pressured Coinbase to return to talks. The Senate Banking Committee has indefinitely postponed action on the bill.
Consequences of Failure
If the CLARITY Act collapses, the U.S. will face prolonged regulatory uncertainty, pushing digital asset investors offshore. The stablecoin market cap has already surpassed $310 billion, and policy vacuum could amplify volatility. The outcome of this standoff will shape U.S. crypto policy in 2026.