Pro-XRP Lawyer Destroys Coinbase’s Excuse: Here’s Why They’re Blocking CLARITY Act

The CLARITY Act is one of the hottest stories in crypto this year. The bill has the banks on board, the White House on board, and President Trump wants it on his desk this spring. For an industry that spent years fighting regulatory uncertainty, this looked like the moment everyone would finally come together.

Instead, one company stands in the way: Coinbase.

Matt Wallace fired the first shot. He said the only thing holding up the CLARITY Act right now is Coinbase. They care more about what is good for Coinbase than what is good for the crypto industry. Wallace pointed out that the banks are ready, the crypto industry is ready, and the White House is ready. One company should not be able to hold up legislation this important.

Then Bill Morgan stepped in. Morgan is a pro-XRP lawyer who became a well-known voice during the Ripple vs. SEC lawsuit. He spent years breaking down the legal battle on social media, earning a reputation for calling things as he sees them. He does not carry water for any exchange. He follows the law and the money.

Morgan said Wallace was correct. And then he explained why.

The current version of the CLARITY Act bans yield on passive stablecoin deposits. That means no more interest payments for holding USDC or similar tokens in a wallet without doing anything with them. For retail users, that is a loss. For Coinbase, it is a direct hit to the bottom line.

Coinbase has a revenue-sharing deal with Circle, the company behind USDC. That deal brings in a sizable portion of Coinbase’s total revenue. The exchange passes some of that income to customers in the form of 3.5% APY or higher. It is a feature designed to keep user balances locked in on the platform. Customers get yield. Coinbase gets liquidity and a cut of the Circle deal.

If the CLARITY Act passes in its current form, Coinbase cannot offer those rewards. The math is simple. USDC balances on the platform would fall. Revenue would fall. Hundreds of millions of dollars are at stake.

Morgan made a point to say there is nothing wrong with a public company acting in its own interest. That is the job. Shareholders expect it. The problem is Coinbase pretending otherwise.

He said Coinbase should spare everyone the act. Stop saying they are acting in the interest of all crypto. They are not. They are acting out of naked self-interest. This is about protecting a revenue stream, not protecting the industry.

Morgan put it plainly. The rest of crypto wants the CLARITY Act to pass. The bill is good for the industry. It brings clarity. It brings banks into the fold. It gives the sector something it has never had: a clear path forward.

Coinbase is standing in the way. And the rest of crypto, Morgan said, wishes it would get out of the way.

Read also: Claude AI Predicts the Price of Solana and XRP If the Clarity Act Doesn’t Pass in 2026

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The post Pro-XRP Lawyer Destroys Coinbase’s Excuse: Here’s Why They’re Blocking CLARITY Act appeared first on CaptainAltcoin.