Coinbase Exec Optimistic About Senate CLARITY Act Compromise, Markup Still Undated

Coinbase's chief legal officer, Paul Grewal, has expressed optimism that the US Senate is close to reaching a compromise on the Digital Asset Market Clarity Act (CLARITY Act). In a recent interview on Fox Business, Grewal noted that lawmakers are nearing agreement on core elements of the crypto market structure bill, despite ongoing debates over stablecoin yield provisions. The CLARITY Act, which aims to establish federal regulations for digital assets, has faced delays due to disagreements between stablecoin issuers and traditional banks. The House of Representatives passed the bill on July 17, 2025, but the Senate Banking Committee has yet to schedule a markup hearing, which was previously delayed by Chair Tim Scott in January. The primary point of contention remains whether stablecoin platforms should be allowed to offer yield or similar rewards. US banks have argued that such incentives could draw deposits away from traditional institutions, potentially destabilizing the banking system. Grewal countered these concerns, stating there is no evidence to support fears of deposit flight. Meanwhile, President Donald Trump has accused banks of undermining efforts to pass the CLARITY Act, alleging they are blocking progress over disagreements on stablecoin yield payments. Trump's comments followed a private meeting with Coinbase CEO Brian Armstrong, who had previously stated that Coinbase could not support the bill 'as written' due to draft amendments that would eliminate stablecoin rewards. The uncertainty surrounding the CLARITY Act's passage has raised concerns within the crypto industry. Coin Center executive director Peter Van Valkenburgh warned that failure to pass the bill could leave the sector vulnerable to future regulatory shifts under a different administration. He emphasized the importance of passing the CLARITY Act to establish a stable legal framework, rather than relying on the current administration's stance. As the Senate continues to negotiate, the absence of a markup date leaves the broader effort to regulate digital assets in limbo, with stakeholders on both sides of the debate awaiting resolution.