Coinbase Reaches Compromise with Banks on Stablecoin Yield Terms, Senate Crypto Bill Progresses

On May 2, Coinbase announced that it has reached a compromise with traditional banks regarding key disagreements over the yield terms for stablecoin holdings, clearing obstacles for the U.S. Senate to advance the crypto market structure bill. Previously, banks had lobbied to restrict or prohibit exchanges from offering yields to stablecoin holders, primarily concerned about funds flowing out of the banking deposit system. Coinbase’s Chief Policy Officer Faryar Shirzad stated that the final plan includes some additional restrictions while still allowing users to earn rewards through crypto platforms and networks based on actual use cases. This progress is expected to facilitate the ‘Clarity Act’ moving into the voting process in the Senate Banking Committee, further clarifying the division of responsibilities between the SEC and CFTC in crypto asset regulation.