Crypto Bill Advances in Senate as Coinbase Expands Stablecoin Role

The Senate Banking Committee voted 15-9 on Thursday to advance the Digital Asset Market Clarity Act, a bipartisan bill that establishes legal standards for crypto oversight and trading [1]. The move sent shares of Coinbase up 9% as investors reacted to the legislation’s progress toward a full Senate vote [1].

The bill creates a framework for how financial institutions handle digital asset custody, lending, and payments [1]. While the committee approved the draft, it remains unclear if the bill will secure the seven Democratic votes needed to pass the full Senate [1]. Key Democratic senators who supported the committee vote, including Angela Alsobrooks and Ruben Gallego, cited unresolved concerns regarding illicit finance and ethics guardrails for elected officials as potential hurdles for future support [1].

A central point of contention remains the ability of crypto platforms to pay interest to customers holding stablecoins [1]. Although lawmakers introduced a compromise rule earlier this month, bank trade groups argue the provision is insufficient [1]. Coinbase and other industry players have lobbied for months to protect this feature, which is vital to the exchange’s revenue-sharing partnership with Circle, the issuer of the stablecoin USDC [1].

Expanding Stablecoin Infrastructure

While the legislative battle continues, Coinbase is independently deepening its integration of USDC into decentralized finance (DeFi) networks. On Thursday, the company announced it will become the official treasury deployer of USDC on Hyperliquid, a rapidly growing decentralized trading platform [2].

This arrangement integrates USDC directly into Hyperliquid’s trading infrastructure, allowing Coinbase to manage liquidity through the network’s Aligned Quote Asset framework [2]. As part of the deal, Coinbase secured rights to purchase assets tied to Hyperliquid’s native stablecoin, USDH, which will be phased out as USDC takes over as the core settlement layer [2]. Circle is also expanding its role on the network, taking on technical responsibilities for minting and redemption while moving toward validator status by staking 500,000 HYPE tokens [2].

The dual momentum of the CLARITY Act and the Hyperliquid integration highlights a broader shift in crypto market structure. As stablecoins evolve from standalone products into core components of treasury and collateral systems, the ability to maintain regulatory clarity on interest payments remains the primary obstacle for firms like Coinbase seeking to scale their operations. Whether the Senate can reconcile the demands of law enforcement and banking lobbyists with the industry’s push for growth will determine the next phase of the digital asset market.