Coinbase CLO Expects CLARITY Act Stablecoin Rewards Deal This Week

Coinbase Chief Legal Officer Paul Grewal said a deal on the CLARITY Act’s stablecoin rewards language could be reached within 48 hours, putting the issue back at the center of the Senate’s crypto talks. His remarks come as lawmakers and industry groups continue working through the last major dispute in the market structure bill.

The current debate focuses on whether crypto firms can keep offering rewards tied to stablecoin use without crossing into interest-like products. At the same time, the broader Senate process remains active, with committee action still expected later in April.

Coinbase CLO Paul Grewal Points to a Near-Term Deal

Coinbase CLO Grewal said the stablecoin rewards question could be settled by Friday this week, suggesting that negotiators may be close to closing one of the bill’s toughest open items. He also linked the matter to the goal of completing the Senate’s market structure work, following the GENIUS Act, which established a separate federal framework for payment stablecoins. 

The CLARITY Act would go further by establishing rules for digital asset oversight and drawing a line between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

His comments arrive after weeks of friction between crypto companies and banking groups over how far Congress should go in limiting rewards tied to stablecoin balances. The bill is designed to bring clearer federal rules to digital asset markets, but the rewards language has slowed progress because it touches both consumer offerings and banks’ concerns about deposit competition. 

Stablecoin Rewards Remain the Main Dispute

The current policy fight centers on whether firms should be allowed to offer rewards that resemble yield on stablecoin holdings. The GENIUS Act already bars primary issuers from paying traditional interest, while the newer market-structure debate now turns on whether exchanges and other platforms can provide similar incentives through reward programs. 

Banks have pushed for tighter limits, arguing that unrestricted rewards could pull deposits away from traditional accounts.

An earlier draft sought to block yield offered directly or indirectly on passive stablecoin balances while still allowing narrower activity-based rewards. That language drew objections from parts of the crypto sector, including Coinbase. 

In recent reports, Tether boss Paolo Ardoino appeared to back criticism of Coinbase CEO Brian Armstrong over his stance on stablecoin yields in the CLARITY Act debate. The reaction followed a social media post urging Armstrong to step back and stop blocking progress on the bill’s stablecoin provisions

Senate Timeline and Market Odds Stay in View

The Senate Banking Committee is still looking at the second half of April for a possible markup after lawmakers return from recess. The final legislative text was expected during the week, but a report on April 1 said the latest draft would no longer be released publicly this week.

Prediction markets are also tracking the bill’s path. The Polymarket contract on whether the CLARITY Act will become law in 2026 showed a 52% probability on April 1, with more than $471,000 in trading volume. 

CLARITY Act to become law in 2026 | Source: Polymarket

Previously, Evernorth said the CLARITY Act could give XRP the legal clarity it has lacked for years in the United States. If XRP is recognized as a commodity under the law, institutions may find it easier to adopt the token with greater confidence.