Draft of US CLARITY Act Pushed Back Again; Coinbase Says Deal Near on Stablecoin Interest

Momentum from the passage of the US GENIUS Act has not carried over to the long-awaited Clarity Act (CLARITY), the proposal expected to set the framework for regulating the US crypto market. Lawmakers were expected to release draft text this week, but the rollout has been delayed as talks continue between crypto industry representatives and traditional financial institutions. Even as the bill's timeline slips, Coinbase signaled progress on one of CLARITY's most contentious issues: whether stablecoin issuers and platforms should be allowed to pay interest. In an interview with Fox Business, Coinbase Chief Legal Officer Paul Grewal said negotiators are nearing consensus. "Despite the debates surrounding stablecoin yields, the bill is moving forward. I think we're very close to an agreement," Grewal said. Grewal argued that stablecoin interest should not be conflated with broader pressures in the banking system. He said banks have warned that permitting stablecoin yields could trigger rapid deposit outflows, but have not produced concrete evidence to back those claims. Grewal also said he expects the congressional process to regain momentum soon, describing CLARITY as consistent with the Trump administration's pro-crypto policy stance. US banks are lobbying for the Transparency Act to include language that would bar crypto platforms from offering stablecoin returns on idle balances. The industry contends crypto firms should face comparable rules to traditional institutions and that allowing stablecoin yields could accelerate deposit migration away from banks. Coinbase and CEO Brian Armstrong have opposed versions of the Clarity Act that restrict interest payments on stablecoins. Armstrong has said such limits would curb US innovation and ultimately hurt consumers. This is not investment advice.