Coinbase Chief Legal Officer Paul Grewal has expressed confidence that a deal on stablecoin yields under the Digital Asset Market Clarity Act will be struck by the end of the week.
This is the strongest indication yet that the months-long impasse between banks and cryptocurrency companies may be coming to an end.
Speaking on Fox Business’ Mornings with Maria on April 1, Grewal described the GENIUS Act’s passage last year as a “watershed” event for the cryptocurrency industry and presented the CLARITY Act as critical unfinished business.
By establishing distinct jurisdictional boundaries between the SEC and CFTC for digital assets, the CLARITY Act aims to close the market structure gap left by the GENIUS Act, which established a regulatory framework for stablecoins.
Since the Senate Banking Committee postponed a planned markup in January, the stablecoin yield provision has been the single largest barrier to the CLARITY Act’s advancement.
According to banks, allowing cryptocurrency companies to offer yield on stablecoin holdings would cause deposits to leave the traditional banking system. Coinbase and other cryptocurrency companies have argued that limiting rewards will harm customers and stifle competition.
Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) reached a bipartisan agreement in principle on March 20 that would allow activity-based incentives linked to payments, transfers, and platform usage but prohibit passive yield on idle stablecoin balances. However, after examining the language from March 23, Coinbase rejected the most recent draft text, citing the limits’ overly broad nature.
Source: X.com
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