Coinbase's Chief Legal Officer, Paul Grewal, told lawmakers that they cannot support the CLARITY Act while opposing crypto rewards. This public comment comes as negotiations regarding the yield rates of stablecoins in the U.S. Senate enter a crucial phase.

The dissenting opinion was published through a public post on platform X, where Grewal framed this debate as a binary choice for legislators considering a compromise proposal on the Tillis-Alsobrooks returns.

Banks and the crypto industry are at odds over the returns of Stablecoins.

The bill in the Senate from Thom Tillis and Angela Alsobrooks will prohibit passive returns on stablecoin balances and will only allow rewards tied to activities such as payments, transfers, or the use of banking platforms. Many banking associations have lobbied for stricter limitations, as they believe rewarding from inactive balances could lead to deposits flowing out of traditional banks.

Grewal has dismissed the argument of deposit outflows for months, stating that this is merely a theoretical accusation without supporting data. The latest report from the White House Council of Economic Advisers also supports him, as it sees that banning stablecoin returns would only increase bank lending by 0.02%.

Revenue from stablecoins accounts for about 19% of Coinbase's revenue in 2025, according to Bloomberg Intelligence. The final message of this bill is therefore financially significant for both the platform itself and major competitors.

The legal time is running out.

Senator Cynthia Lummis has warned that this bill may be delayed until 2030 if the window during the midterm is missed. The Senate Banking Committee also removed this issue from the agenda on April 20, raising concerns that time may be running out quickly.

Grewal's recent comments have increased political pressure on hesitant senators, as the current compromise deal forces a choice between the banking lobby and the crypto industry, which views rewards tied to activity as an acceptable minimum restriction.

Whether this minimum requirement will survive the amendment process of the committee will determine if the CLARITY Act will pass the Senate in 2026.