Catenaa, Wednesday, May 13, 2026-Coinbase Chief Legal Officer Paul Grewal said Wednesday he is confident the Clarity Act will pass before the end of summer, backing a Senate compromise on stablecoin rewards and urging banks to stop opposing the measure.
Speaking at Consensus 2026, Grewal endorsed a revised proposal crafted by Senators Thom Tillis and Angela Alsobrooks.
The compromise would allow activity-based stablecoin rewards tied to platform usage while restricting balance-based yields that banks argue could pull deposits away from traditional institutions.
Grewal called the proposal a workable middle ground that protects stablecoin utility while addressing broader financial concerns.
Pressure On Banks
The Coinbase executive sharply criticized banking trade groups that continue to oppose the bill.
He said banks failed to present evidence showing stablecoin rewards would trigger major deposit outflows. Grewal argued the current proposal gives traditional financial institutions stronger protections than they may receive under future federal stablecoin rules.
The compromise emerged after months of lobbying battles between crypto firms and banking groups over how stablecoins should operate under the Clarity Act and the GENIUS Act.
Political Momentum
Brian Armstrong and Coinbase initially opposed earlier versions of the legislation, arguing banking interests had weakened the bill.
Armstrong later backed updated language after negotiations with lawmakers and regulators. Grewal said stablecoin rewards remained Coinbase’s main condition during talks.
The Senate Banking Committee is expected to move forward with markup discussions later this month as lawmakers race against election-year political pressures.
Prediction Market Debate
Grewal also defended prediction markets, arguing federally regulated event contracts fall under the authority of the Commodity Futures Trading Commission rather than state gaming regulators.
He said disputes between states and federal agencies could eventually reach the US Supreme Court as lawsuits expand nationwide.
Grewal pointed to the 2024 US presidential election as proof prediction markets can outperform traditional polling models after markets projected Donald Trump as the likely winner ahead of election results.
Regulatory Shift
The Coinbase executive said crypto regulation has improved under current agency leadership, praising SEC Chair Paul Atkins and CFTC Chair Michael Selig for supporting modernization of the US financial system.
The Clarity Act would establish federal rules for digital assets and divide oversight responsibilities between the SEC and CFTC, marking one of the largest proposed crypto regulatory overhauls in the United States.
