Coinbase Chief Legal Officer: 'Very Confident' in Passage of the CLARITY Act by End of Summer

BlockBeats News, May 6th - Coinbase's Chief Legal Officer, Paul Grewal, stated that he is "very confident" the CLARITY Act will be passed before the end of the summer and expressed support for the Tillis-Alsobrooks stablecoin reward compromise, making a clear statement to the banking industry: accept the agreement. Grewal supports the compromise proposed by Senators Thom Tillis and Angela Alsobrooks. He stated that the updated bill is a feasible middle ground, preserving the key functions for Coinbase's stablecoin business and the broader financial market.

Coinbase CEO Brian Armstrong and the cryptocurrency exchange publicly opposed early versions of the bill in January, arguing that banking lobbying groups had co-opted it. After a series of negotiations and regulatory meetings, Armstrong's stance shifted. By early April, he openly supported the revised bill, stating "it's time to pass the CLARITY Act." Grewal stated that Armstrong has been consistent throughout: protecting the stablecoin reward was a red line; in his view, the Tillis-Alsobrooks compromise holds that line.

In response to the banking industry's core objection that rewarding stablecoin holders would pose a risk of deposit flight, Grewal offered a blunt response. He stated, "In meeting after meeting, conversation after conversation—many of which I have personally been part of—when pressed, the banking industry has not offered anything substantive to support this claim. It's a claim without evidence." Grewal pointed out that under the federal stablecoin framework, the GENIUS Act, anyone other than the issuer can provide any reward for any purpose. He did not overtly say that the banking industry would not like that result. He argued that the compromise is a better outcome for all parties, including the industries that lobbied most vehemently against it. Grewal's confidence in the summer passage was unwavering. He said, "I am very confident that the CLARITY Act will be passed no later than this summer."