Coinbase Withdraws Support for CLARITY Act, Impacting Stablecoin Rewards
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Strategic Shift: Coinbase has announced its withdrawal of support for the CLARITY Act primarily due to proposed restrictions on stablecoin rewards and DeFi yields, which could lead to greater regulatory challenges for the U.S. crypto market.
- Market Impact: If enacted, the Act may reduce stablecoin-based incentivization, impacting consumer choice and potentially shifting business to offshore competitors not subject to U.S. regulations.
- Industry Response: Coinbase's stance underscores industry-wide concerns regarding the competitive landscape of U.S. crypto regulation, as domestic exchanges may face significant adjustments to their operating models.
- Innovation Risks: Historical data suggests that aggressive regulation may drive innovation offshore, with Coinbase CEO Brian Armstrong noting that the outcome of the CLARITY Act could set precedents affecting crypto business strategies and technological advancements.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
