Coinbase Expect CLARITY Act Stablecoin Reward Deal in 48 Hour

• Coinbase CLO Paul Grewal expects a deal on stablecoin rewards within 48 hours.
• A deal unlocks Senate markup, then a floor vote before reaching President Donald Trump.
• Market odds sit 62% for passage this year as Coinbase stock is down ~50% in six months.

Coinbase Chief Legal Officer Paul Grewal said a deal on the CLARITY Act’s stablecoin rewards provision could be reached within 48 hours. The timeline points to a resolution by Friday, indicating that negotiations between crypto firms and banks are close to completion. 

The stablecoin yield clause has been the main blocker for the bill. Without agreement on this point, the legislation cannot move forward.

Stablecoin Rewards Debate Delays CLARITY Act

Banks have pushed for strict limits on stablecoin rewards. Their concern is that yield-bearing stablecoins could pull deposits away from traditional banking. Crypto firms disagree. Coinbase and others argue that there is no data showing deposit flight tied to stablecoin yields.

Grewal stated clearly that no real-world evidence supports the risk banks are highlighting. The clash has delayed progress for weeks, but current talks show both sides moving toward compromise.

The CLARITY Act is designed to define how crypto markets are regulated in the US. It will determine which assets fall under the SEC and which fall under the CFTC.

Senate Markup Hinges on Final Agreement

A deal on stablecoin rewards would unlock the next stage of the process. The Senate Banking Committee is expected to review the bill after lawmakers return from recess. However, the latest draft text will not be released this week. Lawmakers want to avoid giving opponents time to slow progress.

After markup, the bill would move to a floor vote before reaching President Donald Trump. Despite progress, market confidence remains split. Prediction market data shows a 62% chance of the bill being signed into law this year.

Market Reaction

Coinbase has taken a firm stance against any ban on stablecoin rewards. The company argues that such restrictions would limit innovation and reduce user benefits.

At the same time, Coinbase stock has struggled. Shares have dropped around 50% over the past six months, closing at $172.99 in the latest session. The company continues to frame the issue as long-term infrastructure, not short-term trading.

For now, the focus stays on the next 48 hours. A deal on stablecoin rewards will decide whether the CLARITY Act moves forward this month.

Related: Crypto Influences Young UK Voters, Coinbase Survey Finds