Coinbase, the largest cryptocurrency exchange in the US, has expressed disapproval of the latest draft of the Clarity Act, which seeks to ban yields on stablecoins.
Speaking in Senate offices during a Monday meeting, the company expressed concerns about the bill’s language and its intentions, saying it rejects the compromise meant to level the playing field between cryptocurrency companies and banks.
Recently, Senators Thom Tillis and Angela Alsobrooks led the development of a draft to accelerate the bill’s passage through the Senate. The document addressed the long-standing debate on stablecoin yields, which banks claimed created unfair competition to their fiat deposits.
More specifically, the bill proposed a restriction on interest from passive stablecoin deposits in favor of “active rewards.”
Following its development, the above senators expressed optimism that the much-delayed act would receive Senatorial approval, but this seems to have hit a wall with Coinbase’s latest stance.
Notably, Coinbase is a major sponsor of the Fairshale Super PAC network – a massive bipartisan political organization dedicated to electing crypto and blockchain advocates into the US Congress. The group’s prominence in American politics has grown considerably following its multi-million dollar electoral donations to President Donald Trump.
Senators and other politicians, therefore, risk defunding if Coinbase’s conditions regarding the Clarity Act are not met. The release of the draft already caused a drop in Coinbase’s stock price to below $200, a level it has yet to recover from, with shares closing at $181.10.
Source: MarketWatch
Wyoming Senator Cynthia Lummis has called for a compromise, saying further delays would harm America’s financial future.
Community reaction shows deep disappointment at yet another delay, while others argue that banks actually need protection because of the current enormous debt burden.
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