Coinbase Says Crypto Bill ‘Clarity Act’ Will Pass by the End of Next Summer

Coinbase Chief Legal Officer Paul Grewal said he is “very confident” that the CLARITY Act, a long-awaited regulation for the cryptocurrency sector in the US, will be enacted before the end of summer.

Grewal also stated that they supported the stablecoin reward system agreement presented by Senators Thom Tillis and Angela Alsobrooks, adding that this sent a clear message to the banking sector that the agreement was accepted.

Grewal argued that the updated bill offered a viable middle ground that preserved critical functions for both Coinbase’s stablecoin business model and the broader financial markets. He specifically stated that protecting the reward mechanism offered to stablecoin users was a red line for the company, and that the Tillis-Alsobrooks compromise preserved this boundary.

Related News: Billionaire Investors Mike Novogratz and Anthony Scaramucci Discussed the Possibility of Bitcoin Reaching $100,000

Coinbase CEO Brian Armstrong and company management strongly opposed the initial version of the bill in January. The company claimed that banking lobbies were shaping the bill to serve their own interests. However, following meetings and negotiations with regulators, Armstrong’s stance changed. Openly supporting the updated text in early April, Armstrong stated, “It’s time to pass the CLARITY Act.” Grewal added that Armstrong’s position has remained unchanged from the beginning, and their primary goal is to protect stablecoin rewards.

Grewal also criticized the banking sector’s biggest objection, the argument that “stablecoin rewards will lead to deposit outflows.” He stated that no concrete data was presented to support this claim during discussions with banking representatives, saying, “There is zero evidence to support this argument.” He also pointed out that under the GENIUS Act, which sets out the federal stablecoin framework, even entities that are not stablecoin issuers can offer reward systems for different purposes.

*This is not investment advice.

Continue Reading: Coinbase Says Crypto Bill ‘Clarity Act’ Will Pass by the End of Next Summer