Coinbase Chief Legal Officer: Confident CLARITY Bill Will Pass This Summer
Coinbase Chief Legal Officer Paul Grewal stated that he is "very confident" that the CLARITY Bill will pass before the end of summer, and he explicitly supports the stablecoin reward compromise proposed by Tillis-Alsobrooks.
Grewal described the compromise as a feasible middle ground that retains the core functions of Coinbase's stablecoin business while sending a clear signal to the banking sector. He pointed out that the banking industry's concerns about "stablecoin rewards leading to deposit outflows" lack substantial evidence.
Coinbase CEO Brian Armstrong previously opposed earlier versions of the bill but changed his stance after negotiations, publicly supporting the updated version in early April, believing that the compromise maintains the critical line on stablecoin rewards.
Source: Public Information
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Paul Grewal, as Coinbase's long-time Chief Legal Officer, has participated directly in CLARITY Bill negotiations during multiple congressional hearings and regulatory meetings. This public statement continues Coinbase's strategic shift from early strong opposition to acceptance of compromise. Brian Armstrong softened his position after publicly criticizing bank lobbying in January, achieving this through several closed-door meetings.
On the capital front, Coinbase is concentrating lobbying resources on protecting stablecoin issuance and reward mechanisms, reducing the risk of the bill stalling by accepting compromise. The goal is to quickly achieve regulatory clarity to promote the expansion of the Base chain and stablecoin business while alleviating conflicts with traditional banking regulations, creating a certain environment for institutional capital inflow.
Similar to the compromise paths in the 2024-2025 crypto industry regarding MiCA and legislation in multiple U.S. states, as well as Coinbase's early stance evolution on the FIT21 bill, the current CLARITY Bill is at a critical juncture transitioning from confrontation with banks to a bipartisan compromise.
Essentially, this represents a regulatory change: the Tillis-Alsobrooks compromise retains stablecoin rewards while adding consumer protection clauses, restructuring crypto regulation from strict bank-dominated restrictions to a framework balancing innovation and traditional financial interests. Mechanically, it weakens bank lobbying power by countering their concerns with insufficient evidence, accelerating capital's shift from regulatory uncertainty to large-scale deployment of compliant products.
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The art of regulatory negotiation is turning the other party's concerns into baseless talk. The red line cannot be lost, but compromise can turn the bill from "possible" to "passing this summer." The industry's smartest shift is moving from confrontation with banks to finding solutions that banks can also accept.