Coinbase CLO: Clarity Act Deal on Stablecoin Yield ‘Very Close’

Coinbase Chief Legal Officer Paul Grewal said lawmakers are “very close to a deal” on the Clarity Act, the crypto market structure bill whose stablecoin yield provisions have sparked intense opposition from a banking sector concerned about potential deposit outflows to crypto platforms.

Speaking about the bill’s prospects on Fox Business, Grewal expressed confidence that negotiators would bridge the divide. “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 Coinbase executive directly addressed the banking industry’s core concern. “I can understand the theoretical argument that somehow stablecoins pose a risk to deposit flight from banks, especially community banks,” Grewal 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 move quickly, with Grewal projecting movement towards a markup hearing in the Senate Banking Committee, “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 the next 48 hours. In a follow-up tweet, Grewal said that Congress is “ready to act.”

The controversy over stablecoin yield limits has proved divisive enough that the Senate Banking Committee cancelled a planned session on the bill in mid-January. Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) subsequently negotiated compromise draft text late March, enabling an “agreement in principle” with the White House.

The legislative outcome carries significant financial implications for Coinbase, whose stock has fallen 50% over the past six months amid regulatory uncertainty.

Prediction markets show growing confidence in the bill’s prospects, with Polymarket traders giving the Clarity Act a 65% chance of being signed into law by President Trump this year, up from lows of 48% yesterday. The legislation would provide regulatory clarity that could allow U.S. crypto exchanges to compete with offshore platforms offering stablecoin yield products, a key revenue driver that companies like Coinbase have been unable to fully deploy domestically to date.

The back-and-forth over the Clarity Act’s stablecoin yield provisions has sparked turmoil in the markets, with Circle’s stock plunging 20% when investors learned of potential restrictions, while Ethereum funds shed $222 million as crypto bill fears rattled traders. The legislation faces a key vote in April and must pass by May, otherwise “digital asset legislation will not pass for the foreseeable future,” according to Senator Bernie Moreno (R-OH).