Coinbase Backed the CLARITY Act. Here’s Who Actually Won.
https://open.substack.com/pub/stablecoinbrief/p/coinbase-backed-the-clarity-act-heres?utm_source=share&utm_medium=android&r=bsqyp
Posted by knivef
Coinbase Backed the CLARITY Act. Here’s Who Actually Won.
https://open.substack.com/pub/stablecoinbrief/p/coinbase-backed-the-clarity-act-heres?utm_source=share&utm_medium=android&r=bsqyp
Posted by knivef
2 Comments
I can tell you who didn’t win. We, the users.
There are few people who understand how to correctly analyze statutory language, so it’s important to go to the source on this. [https://x.com/intangiblecoins/status/2050331780226355426](https://x.com/intangiblecoins/status/2050331780226355426)
Yes, the text does say you can’t pay yield in a way that’s economically identical to bank deposits.
However, the text ALSO specifically creates permissible activities from which a third-party *can* distribute yield. An inexhaustive list includes providing liquidity, putting assets at credit risk (on-lending), as well as participation in governance, validation or staking. In other words, Coinbase can use stablecoin balances to fund these activities and distribute gains from those activities to users. Further, the text states those payments “may be calculated by reference to a balance, duration, tenure, or any of the foregoing.”
In other words, the amendment says stablecoins can’t pay yield like banks do, and then lists things that it considers distinct from bank deposit interest payments. And these activities are the way that Coinbase and others who offer yield generate that yield in the first place.