Coinbase CLO Paul Grewal Says Clarity Act Will Pass Before Summer Ends

Coinbase Chief Legal Officer Paul Grewal said at Consensus 2026 that he is “very confident” the Clarity Act will pass before summer ends, urging banking trade associations to accept the stablecoin rewards compromise.

“Coinbase CLO: CLARITY Act Passes by Summer Analysis Coinbase Chief Legal Officer Paul Grewal asserts that GENIUS currently governs crypto rewards, but the CLARITY Act will overhaul this if it passes by summer, urging banks to accept regulatory progress”

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Grewal told The Block’s Gareth Jenkinson that the updated bill is a workable middle ground that keeps “Activity-based rewards — yields tied to actual platform usage” while restricting “Idle yield, the balance-based reward model banks had flagged as a deposit-flight risk.”

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CoinDesk reported that White House adviser Patrick Witt said the administration is targeting July 4 for Congress to pass the Digital Asset Market Clarity Act, describing a path that includes Senate Banking Committee markup this month and four working Senate weeks in June for floor passage.

Witt said the timeline runs ahead of a prediction by Sen. Kirsten Gillibrand that Clarity would reach the president’s desk by the first week of August, and he added, “There’s not a lot of slack left in the rope right now.”

Grewal dismissed banks’ deposit-flight objection as unsubstantiated, saying, “There's zero evidence of this,” while warning that rejection of the compromise leaves banks subject to the GENIUS Act.

In the same interview, Grewal urged, “Accept yes for the answer and move on,” and he argued that under the GENIUS Act “any reward can be offered by any non-issuer for any purpose.”

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Reuters reported that Coinbase announced on Friday that an agreement had been reached on a key provision of the Clarity Act, after banks had opposed a measure allowing stablecoin issuers and crypto firms to offer rewarded products and other rewards paid in stablecoins.

Faryar Shirzad, Coinbase’s head of public affairs, said on X that “In the end, banks secured more restrictions on rewards, but we protected what matters: Americans' ability to earn rewards, based on real use of the platforms and crypto networks.”

The Block said Grewal argued the prediction markets jurisdiction fight may require the Supreme Court to issue a final ruling, after Congress granted the CFTC exclusive authority over event contracts.

Grewal pointed to the 2024 U.S. presidential election as the moment prediction markets earned credibility, saying, “The proof was in that pudding,” after polls consistently predicted a Kamala Harris victory while prediction markets had Donald Trump as the likely winner.

Cointelegraph reported that a HarrisX survey found 70% of voters say the US should already have passed clear cryptocurrency legislation and 62% say it is important that the US set the global rules for digital finance.

Cointelegraph also tied institutional adoption to tax policy, quoting Kara Calvert saying a lack of coherent tax policies is the main “barrier” to institutional crypto adoption and adding that “We're sending out millions of 1099-DA’s for things like $1 transactions — that makes zero sense.”