The crypto industry may soon see a major regulatory breakthrough in the United States under the CLARITY Act. According to Paul Grewal, Chief Legal Officer of Coinbase, a deal on the stablecoin rewards provision could be finalized within the next 48 hours.
This has come after months of delays and disagreements between crypto companies and traditional banks, which had slowed the progress of the bill.
Coinbase CLO Expects CLARITY Act Deal in 48 Hours
In a recent interview, Paul Grewal framed the CLARITY Act as critical unfinished business following last year’s GENIUS Act, which he described as a watershed moment for the crypto industry.
While the GENIUS Act established basic rules for stablecoins, it left gaps in market structure, particularly around which regulator, the SEC or CFTC, oversees different digital assets.
The main goal of the Clarity Act bill is to create clear rules for how digital assets are regulated, especially by defining whether assets fall under the SEC or the CFTC.
Despite all, Grewal believes that he expects a deal on the CLARITY Act’s stablecoin rewards provision within 48 hours, suggesting that negotiations may soon resolve the biggest hurdle for the bill.
Why Stablecoin Rewards Became a Major Issue
The main disagreement was between crypto companies and traditional banks. Banks argued that if crypto platforms were allowed to offer rewards or yields on stablecoins, customers might move their money away from bank deposits into crypto platforms.
On the other hand, crypto companies argued that restricting rewards would reduce competition and limit benefits for users.
Earlier, lawmakers, including Thom Tillis and Angela Alsobrooks, proposed a compromise. The proposal suggested banning passive rewards on idle stablecoin balances but allowing rewards based on activity, such as payments, transfers, or platform usage.
However, Coinbase was not satisfied with the draft and believed the restrictions were still too broad.
Polymarket: 61.5% Chance CLARITY Act Passes in 2026
If an agreement is reached soon, the CLARITY Act can move forward in the legislative process. The bill would still need to pass the Senate, be aligned with the House version, and then be signed into law by Donald Trump.
Meanwhile, Polymarket data shows there is a 61.5% chance that Donald Trump would sign the Act into law this year if it passes.
Experts warn that delays could push the timeline into 2026 due to midterm election politics.
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