"Coinbase voices concerns in the US Senate over Clarity Act ban on paying interest"

US cryptocurrency exchange Coinbase is reported to have effectively expressed opposition to a compromise version of the crypto market structure bill (the Clarity Act) that would ban interest payments on stablecoins.

According to Cointelegraph on the 25th (local time), Coinbase raised concerns about provisions related to stablecoin interest in the Clarity Act during a meeting with US senators on the 23rd.

Earlier, the White House was reported to have recently reached a tentative agreement with senators on provisions related to stablecoin interest in the Clarity Act. Under that agreement, paying interest on stablecoin balances would be prohibited under the Clarity Act.

Cointelegraph reported that "blocking interest payments on stablecoins is a measure intended to address banks’ concerns about the risk of deposit outflows," adding that "tensions between crypto and banking industry lobby groups have largely centered on the debate over stablecoin interest."

As friction between the banking and crypto industries continues, concerns are also growing over delays in passing the Clarity Act. US Senator Cynthia Lummis said on X that "we cannot wait until 2030 for another opportunity to pass crypto legislation" and that "bipartisan agreement is essential for the Clarity Act to pass."