Coinbase Legal Chief Says CLARITY Act Stablecoin Rewards Deal Could Land Within 48 Hours

Coinbase's chief legal officer, Paul Grewal, said negotiations over the CLARITY Act's stablecoin rewards provision have advanced to the point that an agreement could be finalized within 48 hours. The legislation is designed to clarify how digital assets are regulated in the U.S., including whether oversight falls to the Securities and Exchange Commission or the Commodity Futures Trading Commission. Grewal described the bill as the next major step after last year's GENIUS Act, which set baseline rules for stablecoins but left open questions around broader market structure and jurisdiction. The sticking point has been stablecoin rewards. Traditional banks have argued that allowing crypto platforms to offer yields on stablecoins could pull customer funds away from deposits. Crypto companies counter that curbs on rewards would weaken competition and reduce benefits for users. Lawmakers including Thom Tillis and Angela Alsobrooks floated a compromise that would prohibit passive rewards on idle stablecoin balances while allowing incentives tied to activity such as payments, transfers, or platform usage. Coinbase has pushed back, arguing the proposed limits remain overly expansive. If a deal is reached, the bill would still need to clear the Senate, be reconciled with the House version, and then be signed into law by Donald Trump. Polymarket pricing implies a 61.5% chance Trump signs the CLARITY Act this year if it passes, though analysts warn continued delays could shift the timetable into 2026 amid midterm-election dynamics.