Coinbase chief legal officer Paul Grewal said US lawmakers are nearing agreement on the Digital Asset Market Clarity Act, signaling potential progress on long-awaited crypto market structure legislation. Speaking in a recent interview, Grewal noted the bill is “moving toward” a markup hearing in the Senate Banking Committee, though no official date has been scheduled.
The proposed legislation aims to establish clearer federal rules for digital asset oversight in the United States. If lawmakers resolve remaining disputes, the bill could advance to a full Senate vote, marking a significant step toward regulatory clarity for the crypto industry.
Stablecoin Yield Remains Key Sticking Point
Despite progress, disagreements over stablecoin yield continue to delay the process. Lawmakers remain divided on whether issuers or platforms should be allowed to offer rewards on stablecoin holdings—an issue that has become central to negotiations.
US banking groups have pushed for stricter limits, arguing that yield-bearing stablecoins could pull deposits away from traditional financial institutions. Grewal pushed back on those concerns, stating there is little evidence to support fears of large-scale deposit flight.
The debate has already slowed legislative momentum. Although the House of Representatives passed the CLARITY Act in mid-2025, Senate action has lagged. Senate Banking Committee Chair Tim Scott previously postponed a planned markup, and discussions have yet to produce a firm timeline for the next step.
Political Pressure and Industry Influence
The legislation has also become entangled in broader political tensions. Donald Trump recently criticized banks for allegedly stalling crypto-related bills, including both the CLARITY Act and other stablecoin frameworks. His comments followed reports of a private meeting with Brian Armstrong, highlighting the growing influence of industry leaders in shaping policy discussions.
At the same time, Coinbase itself has expressed concerns about earlier drafts of the bill. Armstrong previously indicated the company could not support certain provisions, particularly those that would eliminate stablecoin rewards or give banks greater control over competition.
Risks of Further Delays
Regulatory uncertainty remains a major concern for the crypto sector. Coin Center executive director Peter Van Valkenburgh warned that failing to pass the CLARITY Act could expose the industry to shifting political priorities under future administrations.
He argued that without clear legal frameworks, digital asset regulation could become inconsistent, potentially hindering innovation and increasing compliance risks for companies operating in the space.
Outlook for Crypto Regulation
While Grewal’s comments suggest momentum is building, the timeline for final approval remains uncertain. Resolving the stablecoin yield debate will likely determine whether lawmakers can move the bill forward in the near term.
If passed, the CLARITY Act could provide a foundation for more consistent oversight of digital assets in the United States, offering both protections for investors and clearer rules for companies. Until then, the crypto industry continues to operate in a fragmented regulatory environment, awaiting a decisive legislative breakthrough.
