Coinbase Global Inc. (COIN) shares moved higher in U.S. premarket trading Monday, as a bipartisan Senate agreement on stablecoin rewards cleared a key hurdle for the Digital Asset Market Clarity Act of 2025. The compromise, brokered by Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), restricts stablecoin yields that mirror bank deposit interest while preserving rewards tied to genuine platform activity.
The CLARITY Act, which previously passed the House in July, had stalled in the Senate Banking Committee for months over the contentious issue of stablecoin rewards. Under the new draft language, stablecoin yields deemed "economically or functionally equivalent" to bank deposit interest would be prohibited. The Treasury Department and the Commodity Futures Trading Commission (CFTC) would later define the precise threshold through rulemaking.
Coinbase's chief policy officer, Faryar Shirzad, noted that banks pushed for tighter restrictions, but the exchange managed to retain incentives linked to "real usage of crypto platforms and networks." CEO Brian Armstrong responded succinctly on social media: "Mark it up."
Shares of Circle Internet Financial, the issuer of the USDC stablecoin, also surged nearly 10% in premarket trading. Other crypto-linked stocks, including Strategy and Robinhood Markets Inc. (HOOD), moved higher as Bitcoin hovered near $78,846, close to the psychologically important $80,000 level.
The bill now returns to the Senate Banking Committee for markup, with a full Senate vote and potential House-Senate reconciliation still ahead. The legislation would establish a federal regulatory framework for digital commodities, dividing oversight between the CFTC and, in certain cases, the Securities and Exchange Commission (SEC).
Market participants are also watching for Coinbase's first-quarter earnings report, scheduled for release after the bell on May 7. Analysts expect updates on trading and subscription revenue, as well as details on costs associated with USDC rewards.
The White House added to the positive sentiment over the weekend. At the Bitcoin 2026 conference, Patrick Witt, executive director for the President's Council of Advisors for Digital Assets, hinted at a "big announcement" within weeks regarding the U.S. Strategic Bitcoin Reserve. That reserve was established by executive order in March 2025, using government-forfeited Bitcoin and directing Treasury and Commerce to explore budget-neutral expansion options.
However, the path forward remains uncertain. Political disagreements over Trump-family crypto holdings, law enforcement concerns, and the election-year calendar could still delay or derail the bill. The American Bankers Association has warned that yield-paying stablecoins could siphon deposits from community banks, potentially raising their funding costs.
