Coinbase CLO says the Clarity Act is expected to pass this summer, urging the banking industry to accept compromises on stablecoins.

According to Mars Finance, citing The Block, Coinbase Chief Legal Officer Paul Grewal stated that he is "very confident" the Clarity Act, stablecoin legislation, will be passed before this summer, and publicly supports the compromise proposed by Senators Thom Tillis and Angela Alsobrooks. This compromise retains activity-based rewards linked to actual platform usage, while restricting idle yields, which banks perceive as a risk of deposit outflows. Grewal stated that banks have failed to provide substantial evidence of deposit outflow risks during multiple meetings and warned that if this compromise is rejected, banks will face the more lenient GENIUS Act framework, which allows any non-issuer to issue arbitrary rewards. Grewal expects the Clarity Act to pass no later than this summer.