Senate CLARITY Act Closer to Markup as Stablecoin Yield Dispute Narrows

Coinbase's legal chief Paul Grewal signaled Wednesday that US lawmakers are edging toward a Senate Banking Committee markup on the Digital Asset Market Clarity Act, though he stopped short of naming a specific date. Speaking on Fox Business, Grewal said the sticking point around stablecoin yield—the most contentious issue blocking progress—is gradually being resolved.

The Stablecoin Yield Deadlock

Here's where the real crypto policy battle stands: US banks want restrictions on stablecoin yield offerings, arguing that allowing platforms or issuers to pay interest on digital assets could trigger deposit flight from traditional banking. Grewal directly challenged this narrative, stating there's zero empirical evidence backing those deposit concerns.

This yield debate has effectively frozen Senate action since January, when Banking Committee Chair Tim Scott postponed the scheduled markup. The House passed its version of the CLARITY Act back on July 17, 2025, but Senate progress has stalled—making this dispute the last major obstacle to federal digital asset market structure rules.

"I think we're very close to a deal," Grewal told the network, positioning Coinbase's view that a compromise framework is achievable.

Trump's Bank Criticism & Backroom Talks

The political pressure intensified when President Donald Trump publicly attacked banks for blocking crypto market structure legislation. "The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage," he wrote, using his trademark language. Reports later surfaced that Trump had met privately with Coinbase CEO Brian Armstrong hours before the statement—signaling coordinated messaging from the administration and the industry's biggest policy advocate.

Meanwhile, Coinbase shares are down 23% year-to-date, reflecting broader market headwinds and ongoing regulatory uncertainty. Armstrong himself previously stated that Coinbase couldn't support the bill "as written," citing draft amendments that would strip stablecoin rewards and hand banks gatekeeping power over competition.

The Risk of Prolonged Delay

Crypto policy experts are warning that timing matters critically. Peter Van Valkenburgh, executive director of the Coin Center, cautioned that failure to pass CLARITY before April 2026 risks leaving the industry exposed to a future administration's crackdown. His argument is straightforward: passing clear legislation now binds regulatory behavior regardless of which party holds power later.

"The point of passing CLARITY is not to trust this administration. It is to bind the next one," Van Valkenburgh stated, underscoring why the crypto industry views this bill as foundational to market stability and predictable oversight.

The legislative math is tightening. With Grewal confirming near-consensus on core market structure elements and only the stablecoin yield question remaining genuinely contested, a Senate markup appears imminent—but "close" in political terms doesn't guarantee movement. The banking lobby remains entrenched, and without a scheduled hearing date, momentum can easily dissipate.