Coinbase Chief Legal Officer: The "Clarity Act" is "very close" to reaching an agreement on the stablecoin yield issue

Coinbase Chief Legal Officer Paul Grewal stated in an interview with Fox Business that the upcoming "Clarity Act" is "very close" to reaching an agreement regarding the debate on stablecoin yields.

Grewal mentioned that the cryptocurrency market structure bill is progressing, although the debate surrounding stablecoin yields continues. He noted that all parties are gradually realizing that while reward mechanisms are important, other key elements in the bill are also crucial for achieving President Trump's vision of making the U.S. the "global crypto capital."

The U.S. banking industry has previously lobbied for the "Clarity Act" to include provisions that prohibit crypto platforms from offering yields on idle stablecoin balances, arguing that this could lead to a significant outflow of bank deposits. In response, Grewal stated that there is currently no evidence indicating that deposit outflows are actually occurring and pointed out that the issue of stablecoin yields should not be conflated with other challenges facing the banking industry.

Grewal expressed optimism about the bill's prospects, stating that he expects the Senate Banking Committee to initiate review hearings in the coming weeks and ultimately hold a full vote.

Coinbase and its CEO Brian Armstrong have previously publicly opposed versions of the bill that prohibit rewards on idle stablecoin balances, arguing that such restrictions would stifle innovation in the U.S. and harm consumer interests. Meanwhile, Coinbase's stock price (COIN) has fallen 50% over the past six months amid a prolonged downturn in the crypto market, closing down 0.9% at $172.99 on Wednesday.