Coinbase CLO Says CLARITY Act Yield Deal Nears Within 48 Hours

TLDR

• Coinbase Chief Legal Officer Paul Grewal said a stablecoin yield deal under the CLARITY Act could be reached within 48 hours.
• Grewal stated that lawmakers have narrowed differences on stablecoin reward provisions ahead of a Senate markup.
• The Senate Banking Committee plans to hold a markup hearing in the second half of April after the Easter recess.
• Banks have urged lawmakers to restrict passive yield on idle stablecoin balances.
• Coinbase rejected the earlier draft language and said the proposed limits were too broad.

Coinbase Chief Legal Officer Paul Grewal said lawmakers could finalize a stablecoin yield deal within 48 hours. He expressed confidence that negotiations under the CLARITY Act have narrowed key differences. He shared the update during a televised interview while Senate discussions continued.

CLARITY Act Talks Advance Toward Senate Markup

Grewal said negotiators have moved closer to agreement on stablecoin yield language. He told Fox Business that lawmakers recognize the need for balanced rules. He added, “I think we’re very close to a deal.”

He explained that talks focus on how platforms can offer rewards on stablecoin balances. Banks have pushed lawmakers to restrict passive yield on idle funds. However, crypto firms argue that limits would reduce consumer benefits and competition.

The Senate Banking Committee delayed a planned markup in January over the yield dispute. Lawmakers later reached a bipartisan framework on March 20. Senators Thom Tillis and Angela Alsobrooks proposed banning passive yield while allowing activity-based rewards.

Coinbase reviewed the draft language dated March 23 and rejected it. The company said the restrictions remained too broad. Grewal now says both sides have narrowed the remaining differences.

He stated that lawmakers plan to hold a markup hearing in the second half of April. Chairman Tim Scott will set the schedule after the Easter recess. The recess ends on April 13.

Senator Cynthia Lummis confirmed the April timeline during the DC Blockchain Summit. She described the yield talks as “99% resolved.” However, the Senate has not released updated draft text this week.

A spokesperson for Senator Tillis said lawmakers want to limit opposition before the committee vote. The spokesperson cited concerns about giving critics time to organize. Lawmakers aim to maintain momentum before a floor vote.

Coinbase Rejects Deposit Flight Claims as Debate Continues

Banks have argued that stablecoin yield could shift deposits from traditional institutions. They have urged lawmakers to align crypto platforms with banking standards. Industry groups continue to lobby for tighter restrictions.

Grewal rejected claims that stablecoin rewards would cause deposit losses. He said no data shows a deposit flight linked to stablecoins. He told Fox Business, “There has been no evidence of deposit flight whatsoever.”

He said policymakers should not link stablecoin yield to other banking sector pressures. He emphasized that the debate centers on consumer rewards and innovation. He added that other provisions in the CLARITY Act remain under discussion.

Lawmakers continue to address issues beyond yield language. They are reviewing rules on token classification and DeFi oversight. They are also considering ethics provisions on crypto holdings by public officials.

Prediction markets reflect ongoing uncertainty around the bill’s passage. Polymarket currently assigns a 51% probability that lawmakers will sign the bill into law in 2026. The figure has fallen from levels above 70% earlier this year.

Galaxy Research Head Alex Thorn warned that timing remains critical. He said the bill must reach the Senate floor by early May to maintain prospects. Senator Bernie Moreno echoed that concern in recent remarks.

Coinbase stock on Nasdaq under the ticker COIN closed at $172.99 on Wednesday. The stock fell 0.9% during the session and has dropped 50% over six months. Grewal said the company focuses on long-term infrastructure development across the crypto sector.

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