TechFlow News, April 2, according to The Block, Coinbase’s Chief Legal Officer Paul Grewal stated in an interview with Fox Business that the controversy surrounding stablecoin yield in the U.S. Clarity Act is “very close to reaching agreement,” and he expects the Senate Banking Committee to initiate markup hearings in the coming weeks, ultimately advancing the bill to a full chamber vote.
Grewal noted there is currently no evidence that stablecoin yield leads to bank deposit outflows, and the banking industry should not conflate stablecoins with other challenges it faces. Previously, U.S. banks have persistently lobbied for the Clarity Act to explicitly prohibit crypto platforms from offering yield on idle stablecoin balances, arguing such practices could trigger massive deposit outflows. Coinbase CEO Brian Armstrong has repeatedly opposed these restrictive provisions publicly, asserting they would hinder U.S. financial innovation and harm consumer interests.
