Stablecoin Regulations Dilemma: Coinbase and the Banking Industry's Policy Battle

2026-01-12 03:02:12

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【Blockchain Rhythm】On January 12th, new developments emerged—A leading compliant trading platform is lobbying U.S. legislators to protest the ban on DeFi provisions in the CLARITY Act. According to industry sources, if this bill restricts stablecoin issuers from offering yield rewards on platforms like crypto exchanges, the platform might even withdraw its original support stance.

In fact, the banking industry has always been wary of stablecoin yield products—they worry that such products could divert trillions of dollars from the traditional financial system. The GENIUS Act passed in July last year prohibits stablecoin issuers from paying interest to holders, but it leaves a loophole regarding third-party incentives. Now, the banking sector is trying to close this loophole entirely through the CLARITY Act.

Let’s see how big the impact on trading platforms could be: In Q4 2024 alone, stablecoin-related business contributed nearly $247 million in revenue to a leading exchange. Once restricted, this critical revenue stream is bound to suffer a heavy blow. The U.S. Senate Banking Committee is scheduled to discuss this issue this Thursday, and the outcome will depend on the tug-of-war among various parties.

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AlphaWhisperer

· 3h ago

Banks are really at their limit, afraid that stablecoins will threaten their business, and as a result, they are tightening restrictions more and more.

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ApeShotFirst

· 3h ago

The banking industry is really something else. Watching us make money, they just can't sit still, haha. I think Coinbase's lobbying effort is a lost cause. The CLARITY Act is just designed to choke us. Fixing loopholes after loopholes—what else can we do? It feels like stablecoin yields are about to cool off. Tens of trillions of dollars flowing into crypto? Banks must be terrified and can't sleep, haha. Policies are really unpredictable—support today, oppose tomorrow. It makes me lose faith in any promises. Wait, if Coinbase actually withdraws support, that would be a real slap in the face. This is the ultimate showdown between Web3 and traditional finance. Who will win? It's really hard to say.

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MoodFollowsPrice

· 3h ago

Ha, it's the same old story—banks are terrified, fearing stablecoins will undermine their dominance. This move by Coinbase is really disappointing. They initially promised support but then flipped, showing what compromise looks like. One vulnerability after another is being patched. It feels like regulators are really pushing us into a dead end.

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BearMarketGardener

· 3h ago

Here comes another new regulation to cut the leeks; the banks want to monopolize interest, right?

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