Banks pushed Congress to kill stablecoin yield with CLARITY Act – Coinbase may have found the loophole

- The CLARITY Act tried to ban stablecoin yield to save banks from losing deposits, but Coinbase just outsmarted the bureaucracy with a loophole so thin it’s practically transparent. While regulators drew a line between “passive” interest (banned) and “activity-based” rewards (allowed), Coinbase partnered with Ethena to turn idle USDC into delta-neutral trading strategies. It’s not savings; it’s *active* trading, apparently. So while Jamie Dimon screams about unfair competition, Coinbase is quietly routing $19 billion into synthetic yields that bypass the very firewall Congress built. The banks wanted a wall; Coinbase built a door with a keycard made of financial engineering. Enjoy your 0.01% APY, traditional finance.