48 Hours to Crypto Clarity? Coinbase Signals Stablecoin Rewards Resolution

Paul Grewal, Chief Legal Officer at Coinbase, stated that lawmakers could finalize a deal on stablecoin yields within 48 hours. He expressed confidence that negotiations under the CLARITY Act have narrowed the main differences between parties. Grewal shared this update during a televised interview while Senate discussions continued on the bill.

CLARITY Act Talks Progress Toward Senate Markup

Grewal explained that negotiators are moving closer to agreement on language governing stablecoin yields. He told Fox Business that lawmakers understand the need for balanced rules, adding, “I think we’re very close to a deal.”

The discussions focus on how platforms can offer rewards on stablecoin balances. Banks have pushed for restrictions on passive yields from idle funds, while crypto firms argue that such limits could reduce consumer benefits and stifle competition.

Previous Disputes and Bipartisan Framework

The Senate Banking Committee postponed a planned markup in January due to disagreements over yields. Lawmakers later reached a bipartisan framework on March 20, with Senators Thom Tillis and Angela Alsobrooks proposing to ban passive yields while allowing activity-based rewards.

Coinbase reviewed the March 23 draft and rejected it, stating that the restrictions were still too broad. Grewal now says both sides have narrowed the remaining differences. Lawmakers plan a markup hearing in the second half of April, with Chairman Tim Scott setting the schedule after the Easter recess, which ends on April 13.

Senators Confirm Timeline and Progress

Senator Cynthia Lummis confirmed the April timeline during the DC Blockchain Summit, describing the yield discussions as “99% resolved.” A spokesperson for Senator Tillis noted that lawmakers aim to minimize opposition before the committee vote, ensuring momentum is maintained ahead of the full Senate vote.

Coinbase Rejects Deposit Flight Concerns

Grewal dismissed claims that stablecoin rewards could trigger deposit outflows, stating that no data shows any correlation. He told Fox Business, “There has been no evidence of deposit flight whatsoever.” He emphasized that the debate is about consumer rewards and innovation, not pressures on the traditional banking sector. Other provisions in the CLARITY Act remain under discussion.

Other Ongoing Issues

Lawmakers continue to review issues beyond yield rules, including token classification and DeFi oversight, as well as ethics rules regarding crypto holdings by public officials.

Prediction markets reflect continued uncertainty about the bill’s passage. Polymarket currently assigns a 51% chance that the bill will become law in 2026, down from over 70% earlier this year.

Alex Thorn, Head of Research at Galaxy, warned that timing is critical, emphasizing that the bill must reach the Senate floor by early May. Senator Bernie Moreno echoed this concern in recent statements.

These developments show that negotiations are advancing but highlight the ongoing challenge of balancing consumer protection with fostering innovation in the crypto sector. Monitoring the legislative timeline and any adjustments to the CLARITY Act will be crucial before it becomes law.