Coinbase CLO Says CLARITY Act Deal Within Reach as Senate Stablecoin Standoff Drags On

Grewal: 'We're Very Close to a Deal'

Coinbase's top lawyer is turning up the optimism on Capitol Hill. Chief legal officer Paul Grewal said Wednesday that the US Senate is edging toward agreement on the Digital Asset Market Clarity Act, the sweeping crypto market structure bill that has been stuck in the upper chamber for months, though he stopped short of predicting when a committee vote could take place.

Speaking on Fox Business, Grewal said the Senate Banking Committee is moving toward scheduling a markup hearing and that the legislation could eventually reach a floor vote — provided senators find a way past the stablecoin yield impasse that has stalled progress for weeks. "I think we're very close to a deal," he said.

Stablecoin Yield Remains the Sticking Point

The core disagreement is whether stablecoin issuers or the platforms that distribute them should be permitted to pass yield — or yield-like rewards — on to holders. Traditional US banks have lobbied hard against such provisions, contending that interest-bearing stablecoins would drain customer deposits from conventional accounts and destabilize the banking system. Grewal dismissed those concerns outright, saying there is no empirical basis for claims of deposit flight.

The yield dispute is now considered one of the last major hurdles before a formal committee vote can be scheduled. Reaching a stablecoin yield compromise would likely clear the path for the Senate Banking Committee to set a markup date that has so far eluded both parties.

A Bill That Has Been Waiting Since Last Summer

The House passed its version of the crypto market structure legislation on July 17, 2025. Since then, the Senate side has advanced slowly. In January, Banking Committee Chair Tim Scott postponed a planned markup — and that session has yet to be rescheduled. The delay extended a broader stalemate over federal digital asset rules that has left the industry in legal limbo.

The frustration has reached the White House. Last month, President Donald Trump publicly accused the banking sector of holding the legislation hostage, writing that banks "should not be trying to undercut The Genius Act, or hold The Clarity Act hostage." Reports later surfaced that Trump met privately with Coinbase CEO Brian Armstrong just hours before releasing the statement.

For its part, Coinbase has had its own reservations about the bill. In January, Armstrong said the company could not endorse the market structure legislation "as written" because draft amendments would eliminate stablecoin rewards and allow banks to block competitive threats from crypto firms.

Industry Warns the Clock Is Running Out

Beyond the bank-versus-crypto tug of war, there is a separate urgency argument gaining traction. Coin Center executive director Peter Van Valkenburg warned last week that failing to pass the CLARITY Act before the current political window closes could leave the crypto industry exposed to a far less sympathetic future administration.

Van Valkenburg framed the stakes in stark terms: the bill's developer protections are meant not to reward the current White House but to constrain whoever occupies it next. "The point of passing CLARITY is not to trust this administration. It is to bind the next one," he said.

For now, a formal Senate Banking Committee markup date has not been announced. Grewal's comments suggest the two sides are closer than they have been, but the stablecoin yield question — and the banking industry's resistance — will need resolution before the committee can formally advance the bill.