Coinbase’s top lawyer, Paul Grewal, is urging lawmakers to support the CLARITY Act fully, including the popular practice of offering cryptocurrency rewards. He made this appeal as senators continue to discuss and negotiate a stablecoin bill, a key moment for the legislation.
Someone publicly responded on X, criticizing a proposal. Grewal presented the issue to lawmakers as a simple either/or decision regarding the Tillis-Alsobrooks agreement.
You can’t be for CLARITY and against rewards. It’s one or the other. Time to choose.
— Paul Grewal (@iampaulgrewal) April 21, 2026
Banks and Crypto Clash Over Stablecoin Yield
A proposed Senate bill, led by Thom Tillis and Angela Alsobrooks, aims to prevent stablecoin holders from simply earning rewards for holding their coins. Instead, rewards would only be allowed for actively using stablecoins – like making payments or transferring funds. Some banking groups are pushing for even stricter rules, fearing that offering rewards on stablecoin balances could lead customers to move their money out of traditional banks.
For months, Grewal has rejected the idea that people would move their deposits out of banks if stablecoin yields were banned, stating it’s just a theory without evidence. A recent report from the White House Council of Economic Advisers supports his view, finding that such a ban would only increase bank lending by a minimal 0.02%.
As a crypto investor, I’ve been reading reports, and Bloomberg Intelligence estimates that stablecoins currently make up around 19% of Coinbase’s expected revenue for 2025. That’s a significant chunk of change, and it seems like this revenue stream is really important not just for Coinbase, but for all the major exchanges out there.
The Legislative Clock Is Running Out
Senator Cynthia Lummis has cautioned that if the bill isn’t passed soon, it might not be considered until 2030. After removing it from the schedule for April 20th, the Senate Banking Committee’s decision has increased concerns that time is running out to pass the legislation.
Grewal’s recent actions make the decision more difficult for senators who haven’t made up their minds. The current agreement puts them in a position where they must choose between supporting the interests of traditional banks and the crypto industry, which sees rewards programs as a fundamental right.
The CLARITY Act’s chances of passing the Senate in 2026 depend on whether it gets approved by the committee reviewing it.
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2026-04-21 18:46