Senate Markup Set for April As Coinbase Fights to Save $1.35 Billion in Revenue

The CLARITY Act is moving again, and this time the timeline looks real. A recent update reveals that the CLARITY Act is all set to make headlines again, with Coinbase hinting at a possible Senate markup in the second half of April and potential passage by May. 

According to Coinbase’s internal market view, lawmakers had already reached an agreement in principle on March 20, followed by a new compromise on March 24 that proposes banning passive stablecoin yield while still allowing limited, activity-based rewards.

The Stablecoin Flashpoint

The biggest sticking point is stablecoin yield. The latest proposal aims to ban passive rewards, meaning users won’t earn just by holding stablecoins. However, it still allows limited incentives tied to actual usage, like payments.

This isn’t a small tweak. In 2025, Coinbase and Circle generated around $2.75 billion from reserves backing USDC. Coinbase’s share alone was roughly $1.35 billion, close to one-fifth of its total revenue.

If passive yield disappears, that revenue stream takes a direct hit.

Coinbase’s Stand

Moreover, Coinbase isn’t opposing the entire bill. It supports clearer rules for DeFi, developer protections, and a defined split between regulators. The issue is the wording around yield.

Chief Legal Officer Paul Grewal has warned that vague language today could give future regulators too much power to reinterpret rules. The company is now working on a coordinated counterproposal to keep reward models viable while still aligning with regulation.

“My memory is a little better than to trust future rogue regulators to faithfully apply the law.” Grewal

This also ties into Coinbase’s broader model. The platform takes a sizable cut from staking rewards, around 35% on major assets, showing how central yield-based income is to its business.

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Power Struggle Behind the Scenes

Tensions are not just regulatory; they’re also institutional. Jamie Dimon and Brian Armstrong have reportedly clashed over stablecoin economics, even as both firms maintain a working partnership.

On the policy side, White House adviser Patrick Witt has made the urgency clear: move now or risk losing the window entirely.

What This Means for the Market

The outcome directly affects users. If broader reward structures remain, stablecoins could continue offering 4–5% returns, keeping liquidity strong. If restrictions tighten, incentives shrink, and capital could shift back toward traditional systems.

Overall, the full draft is expected soon, and the next few weeks will decide everything. This isn’t just another bill; it’s a turning point that will shape how crypto operates in the U.S., from user rewards to billion-dollar revenue models.

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