On April 1, 2026, Coinbase Chief Legal Officer Paul Grewal told Fox Business that negotiations on the Clarity Act are advancing quickly, with a deal on stablecoin yield appearing “very close.” He emphasized that rewards on idle stablecoin balances are important but must not overshadow other critical elements of the bill, which aims to fulfill President Trump’s vision of making the U.S. the “crypto capital of the world.”
Grewal expressed confidence that the legislation is heading toward a markup hearing in the Senate Banking Committee within the next few weeks, followed by a floor vote. This marks a significant step forward after months of debate between crypto industry leaders and traditional banking interests.
U.S. banks have lobbied hard to include language in the Clarity Act that would prohibit crypto platforms from offering yield on idle stablecoin balances. They argue that such rewards could lead to deposit flight from traditional banks, especially community banks.
Grewal pushed back on this concern, stating there is “no concrete evidence” of deposit flight occurring. He noted that the theoretical risk should not be conflated with other challenges currently facing the banking sector. Coinbase and CEO Brian Armstrong have consistently opposed any ban on stablecoin rewards, arguing it would stifle innovation and harm consumers.
Grewal stressed that Coinbase’s focus extends far beyond short-term trading. The company is building infrastructure to fundamentally improve the financial system for everyday Americans. He highlighted that the Clarity Act represents more than just regulatory tweaks — it is about creating a clear, innovation-friendly framework for the next 10 to 50 years of crypto development.
Coinbase stock (COIN) closed at $172.99, down 0.9% on the day, reflecting broader market pressures amid the ongoing crypto downturn.
If the Clarity Act passes with a balanced approach to stablecoin yield, it could unlock new capital flows, encourage institutional participation, and provide much-needed legal certainty for stablecoins like USDC. The bill is expected to address key issues such as asset classification, regulatory roles for the SEC and CFTC, and rules for exchanges and custodians.
