Brian Armstrong Puts 19% Stablecoin Revenue Before Clarity Act

• Brian Armstrong has twice pulled Coinbase’s support for the Clarity Act.
• Stablecoins accounted for 19% of Coinbase’s revenue, totaling $355 million in a single quarter.
• The Clarity Act stalls in the Senate amid fractured industry support, delaying U.S. crypto regulation.

Coinbase CEO Brian Armstrong blocked key stablecoin yield provisions in the Clarity Act, forcing the Senate to postpone its January 2026 markup. Despite House approval 294 134 and broad support from a16z, Ripple, the White House, and Trump, his move exposed deep industry tensions. 

Stablecoins drive 19% of Coinbase’s revenue, earning 355 million in a single quarter, and Armstrong fought yield restrictions to protect profits, leaving U.S. crypto regulation in limbo.

Armstrong Twice Pulls Coinbase Support For The Clarity Act

In January 2026, Brian Armstrong publicly withdrew the exchange’s support for the Senate Banking Committee draft of the Digital Asset Market Clarity Act (CLARITY Act) just hours before a scheduled markup. 

Armstrong stated on X that this version of the bill was materially worse than the current regulatory status quo and that Coinbase would rather have no bill than a bad one. He cited multiple issues but focused heavily on provisions that restrict stablecoin yield payments to holders. 

Furthermore, he argued that the language favored traditional banks by limiting competition from crypto platforms that offer yields of 4-5% on USDC, while bank deposit rates are near zero. The move forced the Senate to postpone the markup.

On March 25, 2026, Coinbase again rejected the Clarity Act, telling Senate offices the revised stablecoin yield rules still banned direct, indirect, or equivalent yield on passive balances. The company cited “significant concerns,” marking its second formal rejection and keeping U.S. crypto regulation in uncertainty.

Stablecoin Revenue Fuels Coinbase Opposition

Coinbase’s fierce pushback against the CLARITY Act is driven by stablecoin yield revenue, one of its fastest-growing and highest-margin businesses.

Coinbase’s revenue model is simple and highly profitable. Through its partnership with Circle, the company earns interest on U.S. Treasuries and cash reserves that back every USDC held by users. While banks pay near-zero interest, Coinbase can offer yields of 4 to 5 percent on stablecoin balances, creating a significant competitive advantage.

For instance, in Q3 2025 alone, the company recorded $355 million in stablecoin-related income, accounting for 19% of total quarterly revenue. For the full year 2025, stablecoin-related income reached $1.35 billion, making it a critical profit engine as USDC circulation on Coinbase’s platform continues to expand rapidly.

What’s Next For The U.S. Crypto Regulation Amid Industry Rift?

The CLARITY Act remains stalled in the Senate Banking Committee as of March 28, 2026, with no new markup date scheduled after Coinbase’s second rejection of the compromise text on March 25, 2026.

According to DefiLlama data, Stablecoin growth underscores the stakes as the market cap hits 315 billion, with USDC over 77.7 billion. 

Source: DefiLlama

Coinbase earned 1.35 billion in 2025, and yield limits could slow payments and DeFi adoption. Notably, Coinbase earned a record 1.35 billion in stablecoin revenue in 2025, and yield restrictions could slow adoption in payments and DeFi, which processed 33 trillion last year.

Therefore, three scenarios could unfold. A compromise might ease yield limits and pass the floor by late Q2 2026. If divisions persist, the bill could fail, driving users toward decentralized platforms like Coinbase.