Paul Grewal of Coinbase reports progress on the CLARITY Act, highlighting ongoing negotiations in the Senate.
Coinbase Chief Legal Officer Paul Grewal stated in a recent interview that U.S. lawmakers are nearing an agreement on the Digital Asset Market Clarity Act, with a potential Senate markup hearing on the horizon.
The CLARITY Act, aimed at establishing federal rules for digital asset oversight, passed the U.S. House of Representatives on July 17, 2025, but has faced delays in the Senate Banking Committee.
A key issue delaying progress is the debate over stablecoin yield, where banks argue that allowing rewards could disrupt the traditional banking system by drawing deposits away.
Disputes and Political Involvement
Grewal countered claims of deposit flight, asserting there is no evidence to support such fears, while U.S. President Donald Trump accused banks of stalling the legislation over these disagreements.
Trump met privately with Coinbase CEO Brian Armstrong before criticizing the delays, and Armstrong previously expressed concerns that draft amendments could eliminate stablecoin rewards and favor banks.
Coinbase shares have declined 23% year-to-date, according to Yahoo! Finance, amid the ongoing regulatory uncertainty.
Coin Center executive director Peter Van Valkenburgh warned that failing to pass the CLARITY Act could leave the crypto industry exposed to potential crackdowns by future administrations, emphasizing the need for clear laws to prevent political shifts from shaping policy.
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