Brian Armstrong holds 19% of stablecoin income earlier than Transparency Act

• Brian Armstrong has twice withdrawn Coinbase’s help for the Readability Act.
• Stablecoins accounted for 19% of Coinbase’s income, totaling $355 million in a single quarter.
• The Readability Act has stalled within the Senate amid divided trade help, slowing U.S. cryptocurrency regulation.

Coinbase CEO Brian Armstrong blocked a key stablecoin yield provision within the Transparency Act, forcing the Senate to delay a January 2026 value enhance. Regardless of Home approval 294 134 and widespread help from A16Z, Ripple, the White Home, and Trump, his actions uncovered deep tensions within the trade.

Stablecoins accounted for 19% of Coinbase’s income, bringing in $355 million in a single quarter, Armstrong fought yield caps to guard income, and U.S. crypto regulation remained in limbo.

Armstrong withdraws help for Coinbase transparency legislation twice

In January 2026, Brian Armstrong publicly withdrew the trade’s help for the Senate Banking Committee’s draft of the Digital Asset Market Transparency Act (CLARITY Act), hours earlier than scheduled value will increase.

Armstrong mentioned on X that this model of the invoice is considerably worse than the present regulatory established order, and that Coinbase would reasonably don’t have any invoice than a worse invoice. He cited a number of points, however targeted on provisions that restrict yield funds to stablecoin holders.

He additional argued that the language favors conventional banks by limiting competitors from crypto platforms that supply 4-5% yields on USDC whereas financial institution deposit charges are close to zero. The transfer compelled the Senate to postpone the rise.

On March 25, 2026, Coinbase once more rejected the Readability Act, telling the Senate Workplace that the revised stablecoin yield guidelines nonetheless prohibit direct, oblique, or equal yield on passive balances. Cryptocurrency regulation in the US stays unsure, as the corporate issued its second formal rejection citing “grave issues.”

Stablecoin revenues gas opposition to Coinbase

Coinbase’s fierce backlash towards the CLARITY Act is pushed by stablecoin yield revenue, one of many firm’s fastest-growing and most worthwhile companies.

Coinbase’s income mannequin is straightforward and extremely worthwhile. By way of its partnership with Circle, the corporate earns curiosity on U.S. authorities bonds and money reserves backing all USDC held by its customers. Whereas banks pay near-zero curiosity, Coinbase can provide 4-5% yields on stablecoin balances, creating a major aggressive benefit.

For instance, within the third quarter of 2025 alone, the corporate recorded $355 million in stablecoin-related income, accounting for 19% of its complete quarterly income. For the complete 12 months of 2025, stablecoin-related income reached $1.35 billion, making stablecoins a key revenue driver as USDC circulation on the Coinbase platform continues to develop quickly.

What is going to occur to U.S. digital foreign money rules within the midst of trade rifts?

The CLARITY Act stays stalled within the Senate Banking Committee as of March 28, 2026, with no new value enhance date scheduled after Coinbase rejected the compromise for the second time on March 25, 2026.

The stablecoin’s progress highlights its stakes, because the market cap has reached $315 billion and USDC has surpassed $77.7 billion, in line with knowledge from DefiLlama.

sauce: Defilama

Coinbase earned 1.35 billion in 2025, however yield caps might delay funds and DeFi adoption. Specifically, Coinbase recorded stablecoin income of 1.35 billion in 2025, however yield caps might delay its adoption into funds and DeFi, the place it processed 33 trillion final 12 months.

Subsequently, three situations might play out. A compromise deal might ease the yield cap, probably passing the ground by late Q2 2026. If disagreements proceed, the invoice might fail and customers might flip to decentralized platforms like Coinbase.