Svmuu News: Paul Grewal, Chief Legal Officer of Coinbase, stated in an interview with Fox Business that the debate over stablecoin yield in the upcoming "Clarity Act" is "very close" to reaching an agreement.
Grewal mentioned that the crypto market structure bill is progressing, although the debate surrounding stablecoin yield continues. He noted that all parties are gradually recognizing that while reward mechanisms are important, other key elements in the bill are equally crucial for realizing President Trump's vision of making the United States the "global crypto capital."
The U.S. banking industry has previously lobbied for the "Clarity Act" to include provisions prohibiting crypto platforms from offering yields on idle stablecoin balances, arguing that this could lead to a significant outflow of bank deposits. In response, Grewal stated that there is currently no evidence to suggest that such deposit outflows are actually occurring and pointed out that the stablecoin yield issue should not be conflated with other challenges facing the banking sector.
Grewal expressed optimism about the bill's prospects, saying he expects the Senate Banking Committee to initiate review hearings in the coming weeks, followed by a final full vote.
Coinbase and its CEO Brian Armstrong have previously publicly opposed versions of the bill that prohibit rewards for idle stablecoin balances on multiple occasions, arguing that such restrictions would stifle innovation in the U.S. and harm consumers. Meanwhile, Coinbase's stock price (COIN) has fallen 50% over the past six months amid the ongoing downturn in the crypto market, closing down 0.9% at $172.99 on Wednesday.