Clarity Act will ‘progress’ within 48 hours, Coinbase chief legal officer says

There will be progress on the Clarity Act within 48 hours, Coinbase chief legal officer Paul Grewal told Fox Business on Wednesday.

The landmark crypto markets bill has been in a state of legislative limbo since January due to the crypto industry, banks, regulators, and elected officials struggling to reach an agreement on key details, but Grewal says the gridlock may loosen.

“I’m very confident we’re going to see progress,” he said when asked about the 48-hour window. “I think we’re very close to a deal.”

“Key elements of the bill are critically important to making sure that President Donald Trump’s vision of the United States as the crypto capital of the world is fulfilled,” Grewal said.

Grewal’s optimism comes as the window for reaching a deal is rapidly closing. Most polls suggests that the Republicans are in for a battering in the up-coming midterm elections. If the Democrats reclaim the House, then all legislative work on Capitol Hill is expected to grind to a halt until the 2028 presidential election.

That would force the crypto industry to wait for even more years to get regulatory clarity.

“We need to finish the job,” Grewal said.

Friction

Trump himself has long supported the fledgling industry against the traditional financial establishment and is urging lawmakers to advance the legislation while cautioning banks against obstructing its passage.

“The banks are hitting record profits, and we are not going to allow them to undermine our powerful crypto agenda that will end up going to China, and other countries if we don’t get the Clarity Act taken care of,” Trump said in March.

A key point of friction is stablecoin rewards, reflecting a deeper struggle between traditional banks and crypto firms.

Last year’s Genius Act, signed into law by Trump, barred stablecoin issuers from paying interest, reflecting banks’ concerns that deposits could migrate to higher-yielding digital dollars.

However, uncertainty persisted over whether third-party platforms — including exchanges and crypto firms — could offer rewards tied to stablecoin holdings.

Banking groups have sought to close that perceived gap in the Clarity Act, while crypto companies argue that would amount to litigating settled law.

“The Genius Act is being threatened and undermined by the banks, and that is unacceptable,” Trump said earlier in March.

Some 1,400 banking industry insiders warned that stablecoins could drain deposits from the traditional financial system during the American Bankers Association summit in Washington on March 8. They argue that the proliferation of stablecoins threatens the $23 trillion US credit market, which they profit from.

Yet Grewal tried to dispel those fears.

“There’s been no evidence of deposit flight whatsoever,” he said.

The Senate Banking Committee has yet to restart public deliberations after negotiations over the bill broke down earlier this year.

Crypto market movers

• Bitcoin is down 2.7% over the past 24 hours, trading at $66,868.
• Ethereum is down 3.8% over the past 24 hours at $2,052.

What we’re reading 

• Solana-based Drift Protocol confirms it’s under attack after $285m leaves DeFi platform — DL News
• Russia is about to roll the dice on crypto regulation. Here’s its playbook — DL News
• Google Quantum Paper Speeds Up Timeline for Threat to Crypto to 3 Years — Unchained
• Bye TACO, hello NACHO — Milk Road
• Stablecoins endanger US economy, warns Fed governor. ‘Long and painful history of private money’ — DL News

Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at [email protected].