Coinbase Global, Inc. is engaged in intensive lobbying efforts in Washington, aiming to protect a crucial source of revenue. Analysts suggest that, under ideal circumstances, this revenue stream could potentially grow to seven times its current size. Analysts Paul Gulberg and Samuel Radowitz pointed out that revenue related to stablecoins accounted for approximately 19% of Coinbase's total revenue in 2025. Should the Clarity Act accelerate the adoption of stablecoins in payment scenarios, Coinbase's stablecoin-related revenue could expand by two to seven times. However, the final outcome within this range partly depends on further revisions and negotiations concerning the specifics of the bill by the industry. The act was signed into law by the President in July of last year.

A key point of contention is that the Clarity Act explicitly prohibits stablecoin issuers from paying interest or yields to holders. A complementary legislative draft currently under negotiation could impose even stricter limitations, potentially restricting not only issuers but also prohibiting trading platforms, including Coinbase, from offering rewards on stablecoin balances. This change would directly impact the revenue-sharing arrangement between Coinbase and Circle Internet Corp., the issuer of the USDC stablecoin. Gulberg noted that the ability to continue offering stablecoin rewards to customers is just one factor influencing revenue growth; achieving a sevenfold expansion would still require "favorable provisions in the final crypto bill."

Data shows that Coinbase's stablecoin revenue was $1.35 billion in 2025, up from $911 million the previous year. On the other side of the legislative debate are banking lobby groups. Banks argue that allowing entities like Coinbase to effectively "pay interest" on stablecoin balances could divert low-yield deposits away from banks, potentially disrupting financial stability. The crypto industry counters that its intention is to return the yield generated from stablecoin reserves to consumers.

In January, Coinbase CEO Brian Armstrong temporarily withdrew his support for a related draft from the Senate Banking Committee. Since then, Coinbase, other crypto firms, and industry organizations have held multiple meetings with banking representatives at the White House seeking a compromise. Armstrong stated last week that a "path forward still exists" for the parties involved.

Stablecoin revenue has become a significant growth engine for Coinbase. This revenue stream grew 48% year-over-year in 2025, primarily driven by interest income generated from USDC reserves. Compared to transaction fees, which fluctuate with market conditions, the revenue share from USDC with Circle Internet Corp. is considered to have higher margins and greater predictability. However, starting late in 2025, a downturn in crypto assets led to a slowdown in growth. Coinbase's total revenue for the fourth quarter fell 20% year-over-year to $1.8 billion, a decline that exceeded expectations, prompting the company to record impairments on its crypto assets and investments.

Despite this, Wall Street maintains some supportive voices. Benchmark Co. analyst Mark Palmer sustained a "Buy" rating on Coinbase. He pointed out that Coinbase currently uses a portion of the interest generated by the underlying assets of USDC to pay yields to customers, which, viewed in isolation, pressures margins. If paying such yields were prohibited, it could potentially enhance profitability. Armstrong recently expressed a similar view during an earnings call, suggesting that if the company could not distribute yields to customers, "the company would actually be more profitable."