Coinbase’s Chief Legal Officer, Paul Grewal, says the negotiations on stablecoin yields are pretty much done. In a recent Fox Business interview, he mentioned the bill is moving forward and added, “I think we’re very close to a deal.”
He pointed out that even amid the ongoing controversy over stablecoin rewards, progress isn’t lost. Grewal also noted that policymakers are starting to realize they need to find the right balance between encouraging innovation and providing clear regulations.
Coinbase challenges bank concerns
The biggest point of debate right now is whether stablecoin yields could cause money to flow out of traditional bank deposits. Banks have been pressing lawmakers to put crypto platforms under the same rules they follow.
Grewal pushed back on that fear, saying there’s simply no real-world evidence to back it up. He admitted the theory might sound reasonable on paper, but stressed that the actual data doesn’t show any deposit flight happening. “I can understand why people worry that stablecoins might pull deposits away from banks, especially community banks,” he said.
He also cautioned that policymakers should not make significant decisions on hypotheticals and what-ifs. Grewal argues that the issues with the banking industry cannot be attributed to the innovation of stablecoins. He reiterated that the law must safeguard consumers but leave space for new technology to develop.
Even as things look like they’re moving ahead, there’s still plenty of friction. In a recent X video, Cardano founder Charles Hoskin heavily criticized Coinbase. He stated that the exchange is more concerned with stablecoin yield revenue than with increased regulatory transparency.
“Coinbase is the ONLY GROUP Blocking CLARITY Act,” Hoskinson noted. According to Hoskinson, Coinbase’s actions will delay the legislative process, including token classification under federal law.
Timeline pressure builds as Senate targets next steps
Senate leaders plan to hold a markup session of the Senate Banking Committee sometime in the second half of April. Senator Cynthia Lummis said that the debate over stablecoin yield is pretty much settled, “99% resolved.”
At the same time, Senators Thom Tillis and Angela Alsobrooks just put forward a compromise proposal. The proposal would ban passive yield on idle stablecoin balances.
Meanwhile, Tim Scott is expected to announce the exact schedule for markup soon, once everyone’s back from the Easter break.
The Clarity Act is on a very strict legislative timetable. Once a committee markup is successful, the bill must go to the Senate floor, iron out some differences with the House version, and finally pass before it reaches the president’s desk.
Notably, back in July 2025, the House of Representatives passed its version of the Clarity Act with a solid 294–134 vote.