1️⃣For years, Coinbase has shared in the yield from USDC reserves. CLARITY Act could change the math on how that interest is distributed. If the government treats stablecoins as non-yield bearing, that billion dollar revenue stream could vanish overnight.
2️⃣Everyone wants regulatory clarity, but clarity often comes with strings attached. Coinbase is lobbying to ensure that being regulated doesn't mean confiscating the profit. They want a framework that allows private companies to keep the interest from the assets they manage.
3️⃣The Senate markup next month is crucial. If the bill passes with the wrong language, Coinbase (and the rest of the US stablecoin market) faces a massive structural pivot.
The Bottom Line: Coinbase not fighting for web3 community but for the right to remain profitable in a regulated world.
