Senate CLARITY Act nearing consensus despite missing markup schedule, Coinbase legal chief reports
Paul Grewal, chief legal officer at Coinbase, indicates US legislators are approaching consensus on the CLARITY Act, though Senate markup timing remains undetermined.
Paul Grewal, who serves as Coinbase's chief legal officer, indicated that the US Digital Asset Market Clarity Act is "moving toward" a markup hearing within the US Senate Banking Committee and has the potential to advance to a floor vote should senators successfully resolve disagreements surrounding stablecoin yield provisions and establish a markup schedule.
During a Wednesday interview conducted on Fox Business, Grewal indicated that legislators are approaching consensus regarding fundamental components of the cryptocurrency market structure legislation, despite ongoing discussions concerning stablecoin yield provisions. "I think we're very close to a deal," he said.
These comments suggest potential progress on what remains among the final significant points of contention within Senate discussions regarding crypto market structure legislation: the question of whether stablecoin issuers or platforms ought to be permitted to provide yield or comparable rewards. This particular dispute has contributed to delays in scheduling a Senate Banking Committee markup, leaving the wider initiative to establish federal regulations for digital asset supervision still without resolution.
Traditional US banking institutions have advocated for limitations, contending that such reward incentives might pull deposits away from conventional financial institutions and create disruption within the banking system. Grewal countered this position, asserting that no evidence exists to validate concerns about deposit flight.
On July 17, 2025, the US House of Representatives passed the CLARITY Act. In January, Senate Banking Committee Chair Tim Scott delayed a planned markup, which has yet to be rescheduled.
Trump blames banks for stalling crypto bill
In the previous month, US President Donald Trump leveled accusations against banks for sabotaging attempts to pass crypto market structure legislation, stating they are obstructing progress due to disputes regarding stablecoin yield payments. "The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage," he wrote.
Subsequent reports revealed that Trump had conducted a private meeting with Coinbase CEO Brian Armstrong mere hours prior to releasing the statement.
During January, Armstrong stated that Coinbase was unable to support the market structure bill "as written," citing draft amendments that would remove stablecoin rewards and permit banks to limit competition.
CLARITY delay could expose crypto to crackdowns
In the past week, Peter Van Valkenburgh, who serves as executive director of Coin Center, issued a warning that the failure to enact the CLARITY Act might leave the cryptocurrency industry exposed to a future US administration adopting a more aggressive regulatory approach. His argument emphasized that turning down developer protections in exchange for immediate business advantages creates the risk of establishing a framework driven by political changes instead of definitive legislation.
"The point of passing CLARITY is not to trust this administration. It is to bind the next one,"
he said.