Coinbase Chief Legal Officer Paul Grewal says lawmakers are close to finalizing the Clarity Act, the crypto market structure bill that has drawn fierce opposition from the banking sector over provisions allowing stablecoin yield products. Speaking on Fox Business, Grewal expressed confidence that negotiators would bridge the remaining divide. He framed the bill’s passage as central to fulfilling what he described as President Trump‘s vision of the United States as the global crypto capital.
Grewal directly addressed the banking industry’s primary concern, arguing there is no evidence that stablecoins have caused deposit outflows from financial institutions. “I can understand the theoretical argument that somehow stablecoins pose a risk to deposit flight from banks, especially community banks,” he said. “But if that were in fact the reality, we’d see evidence of that. In fact, there has been no evidence of deposit flight whatsoever.” His remarks come as community banks in particular have lobbied against provisions they fear could redirect customer deposits toward crypto platforms.
On the legislative timeline, Grewal projected movement toward a markup hearing in the Senate Banking Committee within the next few weeks, followed by a floor vote. He also said he was “very confident” that progress on the stablecoin yield provisions would emerge within 48 hours, and followed up with a post on social media stating that Congress is “ready to act.” The optimistic outlook marks a notable shift after months of stalled negotiations.
The bill’s path has not been smooth. The Senate Banking Committee cancelled a planned session on the legislation in mid-January amid disagreements over the stablecoin yield limits. Senators Thom Tillis of North Carolina and Angela Alsobrooks of Maryland subsequently negotiated compromise draft language in late March, producing what was described as an “agreement in principle” with the White House.
The stakes are high for Coinbase, whose stock has declined roughly 50% over the past six months amid ongoing regulatory uncertainty. The legislation, if passed, would provide the regulatory clarity needed for U.S. crypto exchanges to offer stablecoin yield products domestically — a revenue stream that companies like Coinbase have been unable to fully deploy within the country to date.
Market sentiment around the bill has shifted in recent days. Traders on Polymarket now assign the Clarity Act a 65% probability of being signed into law by President Trump this year, up from a low of 48% the previous day. The bill’s turbulent progress has already rattled financial markets, with Circle‘s stock falling 20% when investors learned of potential yield restrictions, and Ethereum funds recording $222 million in outflows as uncertainty over the legislation weighed on traders.
The urgency around the bill is underscored by a warning from Senator Bernie Moreno of Ohio, who has stated that if the legislation does not pass by May, digital asset legislation will not advance for the foreseeable future. A key vote is expected in April, making the coming weeks a critical window for the crypto industry’s legislative ambitions in the United States.
Originally reported by Decrypt.
