Coinbase has opposed a proposed compromise in the US Senate’s crypto market structure bill that would restrict stablecoin yield payments by exchanges.
The exchange reportedly raised concerns with lawmakers over provisions that would prevent third parties from offering yields on stablecoins, a move aimed at addressing banking sector fears over deposit outflows.
The dispute highlights a broader conflict between crypto firms and banks, with lawmakers struggling to reach consensus despite multiple White House-led negotiations.
Banking groups argue that allowing exchanges to offer yields creates a loophole that could pull deposits away from traditional banks, while crypto firms say those concerns are overstated and anti-competitive.
The disagreement has already delayed progress, with Coinbase previously withdrawing support for the bill in January, leading to a postponed Senate Banking Committee markup.
Lawmakers including Senators Thom Tillis and Angela Alsobrooks are continuing negotiations, while Republicans push to pass the legislation before midterm elections that could shift political control.
The Senate bill follows the House’s earlier passage of the CLARITY Act, as policymakers work to establish a comprehensive regulatory framework for crypto markets in the US.