Coinbase Pushes Back on CLARITY Act Limits

Source: Coinomedia Original Title: Coinbase Pushes Back on CLARITY Act Limits Original Link: https://coinomedia.com/coinbase-pushes-back-on-clarity-act-limits/ A major crypto exchange is taking a firm stance against potential overreach in the proposed CLARITY Act, warning it may withdraw its support if the bill imposes excessive limits on stablecoin rewards. According to reports, the company’s concerns center around maintaining a fair and open environment for users earning yield on stablecoins.

The CLARITY Act — a regulatory framework aimed at increasing transparency in crypto — has generally received cautious support from major players in the industry. However, the exchange is sounding the alarm over possible amendments that could go beyond disclosure requirements and outright restrict how users earn interest or rewards from holding stablecoins.

Supporting Transparency, Not Tight Controls

The exchange has made clear that it supports responsible disclosure rules that protect users, but it draws the line at regulatory moves that may stifle innovation. The company argues that as long as users are fully informed about the risks and mechanics of reward programs, there is no need for heavy-handed intervention.

The concern is that overly restrictive rules on stablecoin rewards could undercut decentralized finance (DeFi) alternatives and make U.S.-based platforms less competitive globally. Such measures would not only limit consumer choice but also push crypto activity outside the U.S. — exactly what the CLARITY Act aims to avoid.

What’s Next for the CLARITY Act?

Lawmakers are still shaping the final text of the bill, and industry warnings could influence how the debate evolves. If key industry voices pull their support, it may force legislators to reconsider the scope of the proposed restrictions.

As regulatory clarity becomes a central theme for crypto, the outcome of the CLARITY Act could have far-reaching implications — not just for stablecoin rewards, but for how the U.S. sets its tone on crypto innovation.