Coinbase Chief Legal Officer: "Clarity Act" is "very close" to reaching an agreement on stablecoin yield issues

Mars Finance news: Coinbase Chief Legal Officer Paul Grewal said in an interview with Fox Business that the debate over stablecoin yield in the soon-to-be introduced “Clarity Act” is “very close” to reaching an agreement. Grewal said the bill to regulate crypto market structure is moving forward, even as the debate over stablecoin yield continues. He said the parties are gradually recognizing that while incentive mechanisms are important, other key elements in the bill are just as crucial to achieving President Trump’s vision of making the United States “the global crypto hub.”

U.S. banking industry stakeholders have previously been lobbying to have the “Clarity Act” include provisions that would prohibit crypto platforms from paying interest on idle stablecoin balances, arguing this could lead to large-scale outflows of bank deposits. In response, Grewal said there is currently no evidence that deposit outflows have actually occurred, and noted that the stablecoin yield issue should not be conflated with other challenges facing the banking industry. Grewal expressed optimism about the bill’s prospects, saying he expects the Senate Banking Committee to begin review hearings within the next few weeks and ultimately hold a full vote.

Coinbase and its CEO Brian Armstrong have repeatedly publicly opposed versions of the bill that would ban rewards for idle stablecoin balances, arguing that such restrictions would stifle innovation in the U.S. and harm consumers’ interests. Meanwhile, Coinbase’s share price (COIN) has fallen 50% over the past six months amid continued weakness in the crypto market; on Wednesday, it closed down 0.9% at $172.99.