Cardano Founder Accuses Coinbase of Blocking Crypto Clarity Act Passage

Cardano founder Charles Hoskinson has publicly criticized Coinbase for allegedly obstructing progress on the Digital Asset Market Structure Clarity Act. 

According to Hoskinson, Coinbase is prioritizing stablecoin yields over broader regulatory clarity for the crypto industry. The remarks highlight growing tensions in the crypto sector as policymakers debate how to regulate digital assets in the United States.

Key Points

• Cardano founder Charles Hoskinson claims Coinbase is prioritizing stablecoin yield programs instead of broader regulatory clarity for the crypto industry.
• He said Coinbase is less focused on DeFi restrictions or clarifying whether tokens should be classified as securities.
• Coinbase has repeatedly pushed back against the Clarity Act, particularly the stablecoin yield-restriction provision.
• Stablecoins are a major revenue driver for Coinbase, especially through its involvement with USDC.

Coinbase Is Holding Clarity Act Passage: Cardano Founder

During a recent Meme & Markets podcast, Hoskinson claimed that Coinbase’s objections to the legislation stem primarily from restrictions on stablecoin reward programs rather than concerns about how digital assets should be regulated.

He noted that while Coinbase has framed the issue as a fight to protect consumer access to yield, the company’s real concern is maintaining returns on stablecoin balances.

According to Hoskinson, Coinbase does not care about DeFi restrictions or whether tokens are securities. Consequently, he alleged that the company is stalling the passage of the Clarity Act for stablecoin yields.

Senate Revisions Spark Industry Tension

The controversy stems from changes introduced after the bill moved from the House of Representatives to the Senate last year.

The House originally passed the Clarity Act in July 2025 as part of an effort to define the regulatory status of cryptocurrencies. The legislation sought to clarify whether digital tokens should be regulated as securities by the SEC or as commodities by the CFTC.

However, Senate lawmakers later introduced additional provisions in the Senate Banking Committee version, including restrictions on stablecoin yields and expanded reporting requirements for decentralized finance platforms.

These changes quickly sparked friction between crypto firms and traditional banking lobbyists. Negotiations eventually led to a compromise backed by lawmakers and the White House that effectively bans passive yield payments on stablecoin balances. This move aligns with long-standing concerns from the banking sector.

Coinbase Pushes Back

Meanwhile, Coinbase has opposed the Senate provisions. The exchange has raised several objections, including concerns about potential surveillance of DeFi activity, restrictions on tokenized equity instruments, and limitations on stablecoin rewards.

However, Hoskinson argues that stablecoin yields remain the core issue for Coinbase. He suggested the company’s stance reflects the financial importance of such programs to its business model.

Notably, stablecoins have become a major revenue driver for Coinbase through its relationship with the USDC ecosystem. Reports indicate that income generated from reserves tied to USDC contributed significantly to the company’s earnings, with Coinbase’s share of revenue estimated at around $1.35 billion in 2025.

As a result of this financial exposure, any regulation that restricts stablecoin yields could directly affect the exchange’s profitability.

Meanwhile, the Clarity Act cleared a markup hearing in the Senate Agriculture Committee in January. The Banking Committee, which initially postponed its markup session, now plans to resume the process later this month.

As momentum builds, prominent entities, including JPMorgan, believe the Clarity Act will pass before the end of the year.