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Industry

Coinbase CLO Backs Stablecoin Compromise Despite Industry Pushback

Grewal urges industry to support the Clarity Act compromise, as lawmakers push toward markup while banking groups remain critical of yield provisions.

Written By:
Shubham Soni

Last updated: 55 minutes ago
Published 1 hour ago
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Last updated: 55 minutes ago
Published 1 hour ago
Coinbase CLO Backs Stablecoin Compromise Despite Industry Pushback
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Coinbase Chief Legal Officer Paul Grewal backs the stablecoin yield compromise in the Digital Asset Market Clarity Act.
Senators Thom Tillis and Angela Alsobrooks negotiated the compromise, which is expected to be reviewed by the Senate Banking Committee.
Paul Grewal urges banking trade groups to accept the current bill, despite their dissatisfaction with its provisions on stablecoin yield and rewards.

Coinbase Chief Legal Officer Paul Grewal said he supports the latest stablecoin yield compromise tied to the Digital Asset Market Clarity Act, even as parts of the banking sector continue to oppose it.

Speaking at Consensus Miami 2026 on Wednesday, Grewal described the revised language as “decent,” adding that it should be sufficient to move the bill toward a Senate markup and eventual floor vote. He added, “Some of our friends in the banking trades, in particular, still seem a bit miffed, that they were unsuccessful in killing rewards and yield entirely.”

His remarks come as lawmakers prepare for the next stage of deliberations in the Digital Asset Market Clarity Act.

Momentum builds ahead of committee markup

Grewal pointed to growing legislative momentum, noting that recent developments suggest the bill could advance in “short order.” The compromise, negotiated in part by senators Thom Tillis and Angela Alsobrooks, is expected to be reviewed by the Senate Banking Committee in the coming days.

He indicated that bipartisan support remains likely if the bill clears committee, reflecting broader alignment in Washington on the need for clearer crypto market structure rules.

Banking groups remain unconvinced

Despite progress on Capitol Hill, Grewal acknowledged that not all stakeholders are aligned. Several banking trade groups have criticized the compromise, particularly provisions that stop short of fully prohibiting yield or rewards on stablecoins.

According to Grewal, parts of the banking lobby remain dissatisfied after failing to push for stricter restrictions. He framed the disagreement as a gap between legislative intent and industry expectations.

“Take yes for an answer”

Grewal urged critics to support the current version of the bill rather than risk delaying progress. He argued that lawmakers have sent a clear signal that they want the legislation to move forward, even if it does not fully satisfy every stakeholder.

His message to industry groups was direct: accept the compromise and avoid undermining a bill that has a realistic path to passage. In his view, further resistance could jeopardize momentum at a critical stage.

A test for industry alignment

The debate over stablecoin yield has emerged as one of the most contested elements of the Clarity Act, highlighting divisions between crypto firms and traditional financial institutions.

Grewal’s stance reflects a pragmatic approach, supporting incremental progress rather than holding out for a more restrictive or ideal outcome. As the bill approaches markup, the extent to which industry participants align behind the compromise could influence its path through Congress.

Also Read: No CLARITY Act Without Ethics Provision: Senator Gillibrand

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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TAGGED:CoinbaseStablecoin
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Shubham Soni Crypto Content Editor
By Shubham Soni
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Shubham Soni is a veteran content editor and journalist with over three years of experience leading digital editorial strategies across the U.S. and Indian markets. With a background in high-pressure newsrooms, Shubham specializes in the rigorous fact-checking, structural editing, and narrative development of complex news and explainers. Throughout his career at prominent digital publications like Sportskeeda and Opoyi, he has managed fast-paced desks covering global politics, sports, and entertainment. His expertise lies in transforming technical information into accessible, high-impact reporting while maintaining strict adherence to editorial ethics and accuracy. At The Crypto Times, Shubham oversees the editorial workflow, mentoring writers to ensure all cryptocurrency research and analysis meets the highest standards of clarity and journalistic integrity.

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