Coinbase’s Top Lawyer Says the Crypto Bill Deal Is Hours Away — Here’s What’s at Stake

TLDR

• Coinbase CLO Paul Grewal says a CLARITY Act deal on stablecoin yields could happen within 48 hours
• The main sticking point is whether crypto firms can offer yield on idle stablecoin balances
• Banks fear deposit flight, but Grewal says there is no evidence this is happening
• The Senate Banking Committee markup could happen this month after recess
• Odds of Trump signing the bill this year sit at 51%, per Polymarket

The U.S. crypto market structure bill known as the CLARITY Act is inching toward a deal, with Coinbase’s top lawyer saying an agreement on stablecoin yields could come by Friday.

Paul Grewal, Chief Legal Officer at Coinbase, made the comments in an interview on Fox Business. He said talks between the crypto industry and banks have been ongoing, and that both sides are getting close.

The CLARITY Act is a wide-ranging bill that would set rules for the crypto industry in the U.S. One of its key provisions would clarify which tokens fall under SEC oversight and which fall under the CFTC.

But the bill has been held up by a fight over stablecoin yields. The question is simple: should crypto platforms be allowed to pay users interest on stablecoin balances they hold?

Banks say no. They have lobbied to block that provision, arguing that crypto firms should follow the same rules as traditional banks. They also claim that stablecoin yield could trigger customers to pull money out of banks.

Grewal pushed back on that claim. He said there is no real-world evidence that stablecoin yield leads to deposit flight from banks, calling it a theoretical argument without data to back it up.

What the CLARITY Act Would Do

Grewal described the CLARITY Act as the most important piece of crypto legislation in the pipeline. He said it builds on last year’s passage of the GENIUS Act, which he called a “watershed” moment for the industry.

The CLARITY Act would create a full market structure for crypto in the U.S. It would also determine how different tokens are classified under federal law.

Coinbase CEO Brian Armstrong has also spoken out against versions of the bill that would ban stablecoin rewards. He has argued that such a ban would hurt consumers and slow down innovation.

The Senate is no longer expected to release the latest draft text of the bill this week. A spokesperson for Senator Thom Tillis cited concerns that releasing it too early could give opponents a chance to slow things down.

Talks between crypto and banking groups have continued in recent days. Both sides had previously opposed an earlier draft agreed to by Senators Tillis and Angela Alsobrooks.

Coinbase Stock and Market Outlook

Coinbase stock has dropped around 50% over the past six months, closing at $172.99 on Wednesday, down 0.9% on the day. The stock trades on the Nasdaq.

Grewal said Coinbase is focused on long-term infrastructure, not just short-term trading activity. He pointed to the company’s broader goal of reshaping how the financial system works for everyday Americans.

According to Polymarket, there is currently a 51% chance that Trump signs the CLARITY Act into law in 2026.

The Senate Banking Committee markup is expected to take place this month after senators return from recess.

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