Coinbase reports CLARITY Act compromise close

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Coinbase reports compromise close

Highlights

The CLARITY Act, a bill regulating the cryptocurrency market, is close to being passed in the Senate.
The main issue: stablecoin yields remain a major point of contention.
Coinbase’s Chief Legal Officer stated lawmakers are close to reaching an agreement.
Senate review of the bill has been delayed, but a vote is expected soon.

Progress in regulating the cryptocurrency market

The CLARITY Act is a critical step in establishing a clear and consistent regulatory framework for digital assets in the U.S. Grewal stated that the bill is moving forward and is likely to be presented for hearings before the Senate Banking Committee. He also noted that, once the dispute over stablecoin yields is resolved, the bill could be brought to a Senate vote.

One of the remaining major points of contention in the negotiations is whether stablecoin issuers should be allowed to offer yield or similar rewards to their users. This issue has delayed the bill’s review by the Senate Banking Committee.

Dispute over stablecoin yields

The debate over stablecoin yield continues to delay the bill’s passage. U.S. banks are pushing for restrictions, claiming that such incentives could divert deposits away from traditional financial institutions and disrupt the banking system. Grewal has refuted these concerns, stating that there is no evidence to support fears about deposit outflows from banks due to stablecoin incentives.

In an interview with Fox Business, Coinbase’s Chief Legal Officer, Paul Grewal emphasized that, despite these ongoing debates, lawmakers are "very close to an agreement," which is a significant step toward advancing the bill.

What’s next?

The bill was passed by the U.S. House of Representatives in July 2025, but its review in the Senate has been delayed. In January 2026, Senate Banking Committee Chairman Tim Scott postponed the scheduled review of the CLARITY Act. This bill promises to be a crucial step in establishing federal regulations for digital assets and cryptocurrencies.

The issue of stablecoin yields remains one of the last major unresolved points, but its resolution could pave the way for the bill’s success. If the disagreements are settled, the Senate could proceed to a vote in the near future.

Importance for the cryptocurrency market

The passage of the CLARITY Act will be pivotal for the cryptocurrency industry in the U.S. The bill will create a unified legal framework for regulating digital assets, providing transparency and stability for investors and users.

It will also lay the foundation for federal oversight of cryptocurrency markets, offering greater clarity for cryptocurrency platforms and users. The ongoing debate over stablecoin yields may have a lasting impact on the final passage of the bill, but its progress in the Senate is an important step toward creating a stable legal foundation for digital assets.

Earlier, we reported that Scaramucci warns crypto market faces volatility as CLARITY Act stalls.

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