Coinbase Lawyer Sees CLARITY Act Passing by Summer End
Coinbase Chief Legal Officer Paul Grewal has expressed strong confidence that the CLARITY Act, a significant piece of cryptocurrency regulation in the United States, will be enacted before the end of next summer.
Grewal shared his outlook during recent public comments. He said he is “very confident” that the bill, which aims to provide clear rules for the crypto industry, will cross the finish line within that timeframe. The CLARITY Act has been a long-awaited regulatory framework for the sector.
Stablecoin Reward Compromise
Grewal also addressed a specific provision regarding stablecoin rewards. He voiced support for an agreement brokered by Senators Thom Tillis and Angela Alsobrooks. According to Grewal, this compromise sends a clear message to the banking sector that the agreement has been accepted by key parties.
He described the updated bill as offering a viable middle ground. This middle ground, he argued, preserves critical functions for Coinbase’s stablecoin business model and for broader financial markets. Grewal was firm on one point: protecting the reward mechanism offered to stablecoin users remains a red line for the company. He said the Tillis-Alsobrooks compromise successfully preserves this boundary.
Shift in Company Stance
The path to this public support has not been straightforward. Earlier in the year, Coinbase CEO Brian Armstrong and company management strongly opposed the initial version of the bill. They claimed that banking lobbies were shaping the original text to serve their own interests. This created tension between the crypto industry and traditional finance.
However, following meetings and negotiations with regulators, Armstrong’s stance changed. In early April, he openly supported the updated text, saying, “It’s time to pass the CLARITY Act.” Grewal added that Armstrong’s position has remained consistent from the beginning regarding their primary goal: to protect stablecoin rewards. The company’s internal view, he suggested, did not waver on this core objective.
Refuting Banking Sector Concerns
The banking sector has raised a key objection. Critics argue that “stablecoin rewards will lead to deposit outflows.” Grewal dismissed this claim. He stated that during discussions with banking representatives, no concrete data was presented to support it. “There is zero evidence to support this argument,” he said flatly.
He further pointed out that under the GENIUS Act, which sets the broader federal stablecoin framework, even entities that are not stablecoin issuers can offer reward systems for different purposes. This, in his view, undermines the banking sector’s primary complaint.
While the bill still faces legislative hurdles, Grewal’s confidence suggests that key stakeholders, including Coinbase, believe a workable compromise is within reach. The next few months will determine whether the CLARITY Act truly becomes law by next summer.
This is not investment advice.
