Coinbase Chief Legal Officer: Very confident that the CLARITY Act will pass before the end of this summer

BlockBeats News, May 6 — Coinbase Chief Legal Officer Paul Grewal stated that he is “very confident” that the CLARITY Act will pass before the end of summer and supports the Tillis-Alsobrooks stablecoin reward compromise plan, sending a clear message to the banking industry: accept the agreement. Grewal supports the compromise plan proposed by Senator Thom Tillis and Angela Alsobrooks. He said that the revised bill is a feasible middle ground while preserving the most critical functions for Coinbase’s stablecoin business and the broader financial market.

Coinbase CEO Brian Armstrong and the platform publicly opposed the early version of the bill in January, claiming that the banking lobbying groups had co-opted it. After a series of negotiations and regulatory meetings, Armstrong’s stance changed. By early April, he publicly supported the revised bill and stated, “It’s time to pass the CLARITY Act.” Grewal said that Armstrong has been consistent from the beginning: protecting stablecoin rewards is a red line; in his view, the Tillis-Alsobrooks compromise plan maintains this line.

Regarding the core opposition from the banking industry—that paying rewards on stablecoin balances could lead to deposit outflows—Grewal responded frankly. He said, “Time and again in meetings and conversations—many of which I personally participated in—when asked, the banking industry has not provided any substantive evidence to support this claim. There is zero evidence.” Grewal pointed out that under the federal stablecoin framework GENUIS Act, any non-issuer can provide any reward for any purpose. He did not directly say that the banking industry would dislike this outcome. He argued that the compromise plan is a better solution for all parties, including the industry that most strongly opposes it. Grewal expressed no reservations about passing the bill in summer. He said, “I am very confident that the CLARITY Act will pass no later than this summer.”