The CLARITY Act is expected to be passed in May. The bill aims to prohibit passive income for stablecoin holders while allowing activity-based rewards. Coinbase warns that this could impact billions of dollars in revenue. The company anticipates earning approximately $1.35 billion from USDC reserves in 2025, supporting regulatory clarity for the bill but opposing income restrictions. Its Chief Legal Officer warns that vague language could give future regulators excessive power.

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