BREAKING: Crypto Market Structure Bill Draft Imminent as Coinbase Prepares Counterattack

A critical crypto market structure bill draft is set for release as early as next week, triggering immediate industry pushback. The Senate Banking Committee's long-awaited CLARITY Act faces fresh opposition from Coinbase, which is preparing a formal counterproposal in response to recent changes to the bill's core provisions, signaling a major regulatory showdown.

Crypto Bill’s Stablecoin Yield Prohibition 

Earlier this week Terrett reported that the newest draft would broadly prohibit platforms from offering yield “directly or indirectly” on stablecoins or on assets that function like bank deposits. 

Lawmakers would still permit activity‑based incentives such as loyalty or promotional rewards, but regulators would be charged with defining what incentives are allowed and with crafting anti‑evasion rules within a year.

That policy shift has already generated sharp criticism from crypto firms and advocates, who say the language favors incumbent banks and risks undermining popular rewards programs that drive consumer engagement. 

The market reaction extended to crypto stocks, with shares of Circle (CRCL), the issuer of the USDC stablecoin, dropped about 20% toward the $100 mark during Tuesday’s trading session following reports of the draft’s potential restrictions.

The situation intensified midweek when Coinbase informed Senate offices that it could not support the recently inserted language. 

Coinbase Signals Major Disagreement 

Sources told Terrett that Coinbase’s Global Head of Investment Research, David Duong, said industry participants are working on a coordinated counterproposal designed to demonstrate why targeted alterations are necessary to protect customers and preserve sustainable rewards programs.

The prospect of next week’s release raises several open questions: whether the Banking Committee will set a date for a formal markup of the CLARITY Act portion; how much of the draft may yet change before the committee takes a vote; and how Coinbase and other industry stakeholders will formalize and present their counterproposal. 

For now, lawmakers appear to be balancing competing priorities — tightening rules around yield while leaving room for certain customer incentives — even as firms warn that overly broad restrictions could stifle innovation and consumer choice.

Featured image from OpenArt, chart from TradingView.com