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Ad Home / Crypto News / CLARITY Act Failure Hands Coinbase a Stablecoin Reward Edge, Bitwise CIO Says CLARITY Act Failure Hands Coinbase a Stablecoin Reward Edge, Bitwise CIO Says 03 Oct, 2026 By Pardon Joshua Pardon Joshua
Pardon Joshua Ngushual is a B2B crypto content writer and SEO/AEO specialist with over five years of experience covering blockchain, digital assets, and Web3 markets. He writes for leading crypto publications including CoinGape, CoinMedium, CoinNewsSpan, UnoCrypto, The Crypto Times, and Token Minds, with a portfolio spanning breaking news, market analysis, price predictions, prediction markets, and long-form editorial features on stablecoins, real-world assets (RWA), and blockchain PR. An Ahrefs-certified marketing professional, Pardon combines editorial craft with data-driven search strategy, building reusable content frameworks and optimizing for both traditional SEO and emerging AI-answer engines. He has developed full editorial pipelines aligned to strict publication house styles and delivered content audits and SEO strategy proposals for fintech and crypto clients. Read full bio Copied! Why Trust CoinGape CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information. Highlights
Crypto did not flinch after the U.S. Senate killed the CLARITY Act. Bitcoin climbed roughly 8% in two weeks
Ether added about 7%. NEAR surged close to 104%, and Uniswap jumped nearly 49%. Bitwise Chief Investment Officer Matt Hougan says that move was no accident
In a Sept. 30 client memo titled “Why Crypto Rallied When Clarity Failed,” Hougan argues the bill’s collapse handed the industry something better
“Crypto sacrificed long-term certainty and got better rules, faster,” he wrote
The Senate voted 49–50 on cloture on Sept. 15, falling 11 votes short of advancing the CLARITY Act
White House and Senator Lummis blamed Democrats for derailing the vote, calling it a setback for U.S. crypto leadership. Hougan’s new memo names four groups that actually gained from the failure
The sharpest fight inside CLARITY Act negotiations was over stablecoin yield. Banks pushed for language that would ban any crypto platform from paying interest or rewards on stablecoin balances
That language died with the bill. The 2025 GENIUS Act bars issuers from paying interest directly, but it is silent on intermediaries
Hougan says that gap lets exchanges pay “rewards” on stablecoin holdings with no federal ceiling
Coinbase has already expanded USDC stablecoin rewards through Morpho’s onchain lending, making it the clearest near-term beneficiary. Established exchanges also keep their competitive moat
The CLARITY Act would have created a national spot-exchange license, lowering the barrier for new entrants. With the bill stalled, that competitive threat is off the table
The SEC and CFTC are now writing crypto rules without Congress, and much of what emerged is cleaner than the bill’s compromises would have produced
Two days after the Senate vote, the SEC issued a five-year innovation exemption. It allows tokenized U.S. listed stocks to trade through permissioned automated market makers and liquidity pools
The CLARITY Act would have ordered years of rulemaking before anything moved
Coinbase tokenized stocks are already live on Aave v4 on Base, showing how quickly deployment followed once the exemption landed
Tokens that use protocol revenue for buybacks were the fourth and loudest winner. Under the bill, a buyback could have pulled a token back into security territory
Without the statute, SEC guidance clarified that announcing a buyback does not make a functional-network token a security
That is why NEAR, Uniswap, Hyperliquid, and Pump led the post-vote tape
Hougan’s risk warning is direct: none of this is statute. A new administration could reverse agency guidance
His counter is equally direct, two years is enough time for large firms to build onchain, and by then crypto may be too large to roll back
The CLARITY Act now eyes a revival only after midterm elections, but the market appears to have already priced the current rules as its baseline
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information
U.S. CFTC Proposes First Crypto Rules Under CTX and CAM After CLARITY Act Fails
From GENIUS to CLARITY: Congress Weighs On-Chain Banking for US Depositories
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White House, Senator Lummis Blame Democrats for Derailing CLARITY Act in Senate
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