Coinbase chief legal officer Paul Grewal says the US Digital Asset Market Clarity Act is moving toward a markup hearing in the Senate Banking Committee and could advance to a floor vote if senators resolve an ongoing dispute over stablecoin yield. Speaking in a Wednesday interview on Fox Business, Grewal indicated that lawmakers are nearing agreement on the core elements of the crypto market structure bill. “I think we’re very close to a deal,” he said. The comments suggest possible progress on one of the final major sticking points in Senate negotiations over federal digital asset oversight.
The central dispute concerns whether stablecoin issuers or platforms should be permitted to offer yield or similar rewards to users. This disagreement has contributed to delays in scheduling a Senate Banking Committee markup, leaving broader efforts to establish federal rules for digital asset markets unresolved. US banks have argued that allowing such incentives could draw deposits away from traditional financial institutions and disrupt the broader banking system. Grewal rejected that position, stating there is no evidence to support concerns about deposit flight.
The US House of Representatives passed the CLARITY Act on July 17, 2025. Senate Banking Committee Chair Tim Scott delayed a planned markup in January, and that hearing has not yet been rescheduled. The bill’s path through the Senate has remained uncertain as the stablecoin yield question continues to divide stakeholders on both sides of the debate.
Last month, US President Donald Trump publicly accused banks of undermining efforts to pass crypto market structure legislation, claiming they were blocking progress over disagreements on stablecoin yield payments. “The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage,” Trump wrote. It was subsequently reported that Trump met privately with Coinbase CEO Brian Armstrong just hours before issuing that statement, though the substance of that meeting was not disclosed.
Armstrong had previously stated in January that Coinbase could not support the market structure bill as written, citing draft amendments that would eliminate stablecoin rewards and allow banks to restrict competition. His remarks at the time signaled significant industry resistance to certain provisions under consideration. The tension between banking sector interests and crypto industry advocates has been a recurring theme throughout the legislative process.
Coin Center executive director Peter Van Valkenburgh warned last week that failing to pass the CLARITY Act could leave the crypto industry exposed if a future US administration adopts a stricter regulatory posture. He argued that prioritizing short-term business interests over developer protections risks producing a regulatory framework shaped by political changes rather than stable law. “The point of passing CLARITY is not to trust this administration. It is to bind the next one,” Van Valkenburgh said. His remarks underscore the longer-term stakes that industry observers attach to the bill’s passage.
Originally reported by CoinTelegraph.
