Coinbase Chief Legal Officer Paul Grewal said on April 1 that negotiators are “very close to a deal” on the stablecoin rewards provision holding up the CLARITY Act, signaling that progress could come within 48 hours as lawmakers race to resolve the last major sticking point in the crypto market structure bill.
Coinbase Signals a CLARITY Act Deal Could Arrive This Week
Speaking on Fox Business, Grewal addressed the ongoing dispute over how the CLARITY Act should treat stablecoin rewards. The host framed the situation as Coinbase signaling that a deal could come together within 48 hours, then pressed Grewal on whether that timeline was realistic.
Grewal responded that Coinbase is “very close to a deal.” When asked again later in the nine-minute interview about the 48-hour window, he said he is “very confident” the negotiation process will show progress.
The remarks represent cautious optimism, not confirmation that a final legislative text has been released. Lawmakers are still actively negotiating, and the Fox transcript describes them as “racing right now to finalize a deal” while key disputes remain unresolved.
The development comes as the broader crypto regulatory picture continues to shift. Firms like Franklin Templeton have moved to launch institutional crypto offerings, underscoring how much industry activity now depends on clear federal rules.
Why Stablecoin Rewards Have Become the Main Sticking Point
Grewal identified the core dispute: pushback centered on rewards for stablecoin holders and people who use stablecoins to make payments in their everyday lives. The question is whether stablecoin programs can offer something resembling deposit interest without triggering securities-law concerns.
A legal summary of the Senate Banking Committee’s draft, published by McMillan on January 14, clarified the distinction at stake. The bill as drafted prohibits rewards or yield solely for holding stablecoins while allowing incentives tied to transactions or specific programs.
That distinction matters. A blanket “stablecoin rewards ban,” the framing many outlets have used, oversimplifies what the draft actually says. Passive holding yield, where an issuer pays users simply for keeping a balance, would be restricted. Activity-based incentives tied to payments or program participation could survive.
The difference has real implications for stablecoin issuers and exchanges alike. Products like Ripple USD (RLUSD), which recently expanded into South Korea, could face different treatment depending on how their reward structures are classified under the final language.
The McMillan summary noted 137 proposed amendments to the Senate Banking draft, indicating the breadth of outstanding issues beyond the rewards question alone. But it is the rewards provision that has emerged as the primary obstacle to consensus.
What Progress This Week Could Mean for the Next Senate Timeline
If negotiators do reach a breakthrough this week, the next step would likely be a formal markup in the Senate Banking Committee. Crypto in America reported on March 18 that Senate Banking Chair Tim Scott expected “the first proposal” on the stablecoin-yield issue by the end of that week, and that leadership was eyeing an April markup window.
That timeline now appears to be holding. Grewal’s April 1 remarks align with the earlier reporting that placed the target resolution window in late March to early April. The fact that a senior Coinbase executive is publicly expressing confidence suggests the private negotiations have advanced beyond the proposal stage reported two weeks ago.
Still, legislative timelines can slip. Public evidence points to active negotiations and expected progress, not a released final amendment. Readers tracking the CLARITY Act should watch for two concrete milestones: the publication of compromise text on the rewards provision and a formal markup date announcement from the Senate Banking Committee.
The outcome will also set a precedent for how digital asset products are structured going forward. As researchers have warned about structural issues in token launches, clear rules on what constitutes a permissible stablecoin incentive could reshape product design across the industry.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
