A compromise on the US market structure bill is drawing mixed reactions from the crypto industry,

Industry Split Over Latest Stablecoin Compromise in Clarity Act

A new compromise on stablecoin provisions in the Clarity Act is stirring up debate. Some in the crypto industry are happy with it. Others? Not so much.

Coinbase has quietly voiced its concerns to Senate staff about the latest draft, though it hasn't gone public with opposition yet. The proposal was shared with industry stakeholders on Monday. Reactions have been mixed—some see it as a win, others as a letdown.

Here's what's in it. The bill would direct certain regulators to craft rules around how yield-generating activities should be regulated. The worry? That those regulators might end up setting subjective standards. Another sticking point: the language could limit how companies tie rewards to stablecoin transaction volumes.

During an industry call this week, Coinbase found itself at odds with other players. Some firms argued that giving up certain stablecoin rewards would come at a steep cost. Others countered that losing the broader legislative framework of the Clarity Act would be an even bigger risk.

Market watchers have already taken notice. Circle's stock dipped 20% on Tuesday, then clawed back some ground on Wednesday. Patrick Witt, the White House's crypto advisor, took to X to push back on what he called "uninformed" predictions. His take? "Everything will work out." The final text is expected sometime this weekend or early next week.