Coinbase: Deal Near on Stablecoin Interest Under the “Clarity Act”

Coinbase’s Chief Legal Officer (CLO) said an agreement is nearing on the issue of paying interest on stablecoins—one of the key sticking points in the Clarity Act, a U.S. bill to set the market structure for digital assets.

According to The Block on the 1st (local time), Paul Grewal, Coinbase’s CLO, said in a Fox Business interview, “I think we are very close to an agreement.”

He stressed that “there is a growing recognition that, along with the importance of rewards, other core elements of the bill also matter,” adding that it is “essential to achieving the goal of making the U.S. a country centered on digital assets.”

U.S. banks are currently lobbying to include provisions in the bill that would restrict the payment of interest on stablecoins. Banks argue that if such functionality is allowed, it could lead to deposit outflows.

Grewal pushed back. “In theory, I can understand the concern, but there is no evidence that this is actually happening,” he said, adding that “no deposit outflows have been confirmed at all.”

He also said that “the stablecoin interest issue should not be conflated with other challenges the banking sector is facing.”

Grewal also commented on the legislative process. “It appears the Senate Banking Committee will soon take up the bill, and it will then proceed to a floor vote,” he said, adding that “there will be progress in the coming weeks.”

Coinbase has maintained its opposition to restricting the payment of interest on stablecoins. CEO Brian Armstrong has also argued that such regulation could hinder innovation and work against consumers.