U.S. 'Clarity Bill' Stablecoin Controversy Resolved... Upper House Deliberations to Begin Soon
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Paul Grewell, Coinbase's Chief Legal Officer (CLO), said in an interview with Fox Business on the 2nd (local time) that the controversy over stablecoin returns in the upcoming 'Clarity Act' is 'very close' to an agreement.
Conflict structure between the banking industry and the virtual asset industry
The U.S. banking industry has been lobbying to include a provision in the Digital Asset Market Structure Act prohibiting virtual asset platforms from providing returns on idle stablecoin balances. This measure is driven by concerns over a massive outflow of bank deposits.
On the other hand, the virtual asset industry, including Coinbase, has strongly opposed these restrictions, arguing that they hinder innovation in the U.S. and harm consumer interests.
"No evidence of deposit leakage... Do not confuse with other issues"
Grewal, the CLO, countered, "There is no evidence to date that bank deposit outflows have actually occurred," adding, "The issue of stablecoin returns should not be confused with other challenges facing the banking industry."
He emphasized, "While the compensation mechanism is important, other key elements of the bill are equally important for President Trump to realize his vision of making the United States the 'global virtual asset capital.'"
House of Councillors deliberations expected to begin "within a few weeks"
CLO Grewal expressed an optimistic view on the prospects of the bill, stating that he predicted "the House of Councillors' Banking Committee will begin deliberation hearings in the coming weeks and ultimately put it to a full vote."
While legislation regarding the structure of the digital asset market is being pushed forward, controversy surrounding stablecoin returns continues.
Coinbase stock price plummets 50% over six months
Meanwhile, Coinbase and CEO Brian Armstrong have publicly expressed their opposition to legislation banning rewards for idle stablecoin balances.
Coinbase stock (COIN) has fallen 50% over the past six months amid the continued slump in the cryptocurrency market. On the 2nd, it closed at $172.99, down 0.9% from the previous day.
Domestic virtual asset investors are paying close attention to the ripple effects that the direction of U.S. stablecoin regulation will have on the global virtual asset market as a whole.
Choi Joohoon joohoon@blockstreet.co.kr
