Coinbase Says Clarity Act Can Pass Congress by Summer, Urges Banks to Accept Stablecoin Compromise

Coinbase said the crypto market structure bill known as the Clarity Act can pass Congress this summer.

Paul Grewal, Coinbase’s chief legal officer, told The Block on May 6 that he is confident the Clarity Act will be passed by the end of the summer at the latest.

Grewal said Coinbase supports a compromise proposal from Senators Tom Tillis and Angela Alsobrooks on stablecoin rewards. The proposal would allow rewards based on actual platform usage while restricting payments made solely for holding balances.

He also urged the banking industry to accept the compromise. “I would urge them not to snatch defeat from the jaws of victory,” Grewal said. “If the answer is yes, then they should accept it and move on to the next step.”

Earlier this year, Coinbase Chief Executive Officer Brian Armstrong publicly opposed an earlier draft of the Clarity Act because it barred interest payments on stablecoins. Armstrong later shifted to supporting a revised version of the bill last month after negotiations with banks and discussions with regulators.

Grewal said Armstrong’s position had been consistent from the start. The core test, he said, was whether stablecoin rewards would be allowed, and he said the Tillis-Alsobrooks compromise met that standard.