Coinbase CLO Says Clarity Act Stablecoin Yield Deal ‘Very Close’ as Senate Pushes for April Vote

Coinbase Chief Legal Officer Paul Grewal said lawmakers are “very close to a deal” on stablecoin yield provisions in the Clarity Act, the long-awaited crypto market structure bill that has stalled over banking sector concerns about deposit outflows to crypto platforms.

Speaking on Fox Business, Grewal expressed confidence that negotiators would bridge the divide on one of the bill’s most contentious elements. “We’re seeing a real recognition that rewards are important, but also other key elements of the bill are critically important to making sure that President Trump’s vision of the United States as the crypto capital of the world is fulfilled,” he said.

The stablecoin yield dispute has been a major roadblock to the bill’s progress. Banks have voiced concerns that if crypto exchanges can offer yield on stablecoins, it could trigger deposit flight from traditional financial institutions, particularly community banks. The controversy was significant enough that the Senate Banking Committee cancelled a planned markup session in mid-January.

Grewal directly addressed this banking industry concern. “I can understand the theoretical argument that somehow stablecoins pose a risk to deposit flight from banks, especially community banks,” he said. “But if that were in fact the reality, we’d see evidence of that. In fact, there has been no evidence of deposit flight whatsoever.”

The legislative timeline could accelerate significantly. Grewal projected that the bill could advance to Senate Banking Committee markup “hopefully as soon as in the next few weeks, and ultimately a floor vote.” He added that he was “very confident we’re going to see progress” on the stablecoin yield agreement within 48 hours of his Fox Business appearance.

Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) negotiated compromise draft text in late March, enabling an “agreement in principle” with the White House. This sets the stage for rapid movement, though the timeline remains tight.

Senator Cynthia Lummis (R-WY), the Clarity Act’s chief champion in the Senate, said the Banking Committee would hold its rescheduled markup in “the second half of April.” Senator Bernie Moreno (R-OH) added that the legislation must pass by May, or “digital asset legislation will not pass for the foreseeable future.”

The stakes are substantial. Prediction markets have been tracking the bill’s prospects closely, with Polymarket traders assigning the Clarity Act a 65% chance of being signed into law by President Trump this year—up from lows of 48% the day before Grewal’s remarks.

The bill’s passage would provide regulatory clarity that could allow U.S. crypto exchanges to compete with offshore platforms offering stablecoin yield products. This is a key revenue driver that major platforms like Coinbase have been unable to fully deploy domestically due to regulatory uncertainty.

The legislative battle has already rattled financial markets. Circle’s stock plunged 20% when investors learned of potential restrictions on stablecoin yield, while Ethereum funds shed $222 million as fears about the bill’s future spooked traders. Coinbase’s stock has fallen 50% over the past six months amid the broader regulatory uncertainty surrounding the Clarity Act.

Market participants are watching closely for any signs that the compromise will hold. The agreement between Tillis and Alsobrooks represents the most concrete progress on resolving the stablecoin yield dispute since the bill was first introduced, and Grewal’s optimism suggests that momentum may finally be building on Capitol Hill.

The bill addresses broader crypto market structure issues beyond stablecoin yield, including custody standards, derivatives trading rules, and regulatory jurisdiction between the SEC and CFTC. Industry participants have emphasized that these other provisions are equally critical to creating a level playing field between domestic and offshore crypto platforms.

If the committee markup proceeds as planned in April and the bill advances to a floor vote before the May deadline, crypto companies could finally get the regulatory clarity they have been seeking for years. That outcome would represent a significant victory for both the industry and the Trump administration, which has signaled strong support for crypto market infrastructure development.

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