Coinbase (NASDAQ:COIN) Chief Legal Officer Paul Grewal told Fox Business on Wednesday that the Clarity Act will see progress within 48 hours.

The Midterm Deadline

“I think we’re very close to a deal,” Grewal said, stressing his confidence in the process.

“Key elements of the bill are critically important to making sure that President Trump’s vision of the United States as the crypto capital of the world is fulfilled,” he added.

The landmark crypto markets bill has been in legislative limbo since January as the crypto industry, banks, regulators, and elected officials struggle to reach agreement on key details.

Grewal says the gridlock may loosen.

Most polls suggest Republicans face losses in upcoming midterm elections. 

If Democrats reclaim the House, all legislative work on Capitol Hill grinds to a halt until the 2028 presidential election, forcing the crypto industry to wait years more for regulatory clarity.

The Stablecoin Battle

Stablecoin rewards remain the key friction point between traditional banks and crypto firms.

Last year’s Genius Act barred stablecoin issuers from paying interest, reflecting banks’ concerns that deposits could migrate to higher-yielding digital dollars.

Uncertainty persisted over whether third-party platforms—including exchanges and crypto firms—could offer rewards tied to stablecoin holdings. 

Banking groups want to close that gap in the Clarity Act, while crypto companies argue that would litigate settled law.

“The Genius Act is being threatened and undermined by the banks, and that is unacceptable,” Trump said in March. 

He warned banks against obstructing passage, noting they’re hitting record profits while attempting to undermine the crypto agenda.

At the American Bankers Association summit, 1,400 banking industry insiders warned that stablecoins could drain deposits from the traditional financial system, threatening the $23 trillion U.S. credit market they profit from.

Grewal dismissed the fears. “There’s been no evidence of deposit flight whatsoever,” he said.

The Tokenization Fight

Coinbase came out firmly against issuer approval requirements for third-party tokenized securities as the SEC pushes for an “innovation exemption” framework.

Scott Bauguess, VP of Global Regulatory Policy at Coinbase, said third-party tokenization doesn’t create a new security and preserves full shareholder rights. 

Conditioning tokenization on issuer consent would grant issuers veto authority over lawful secondary market transfers.

Coinbase pointed to Nasdaq’s tokenized securities trading approval and the DTCC Tokenization Services pilot, arguing the issuer consent requirement contradicts established regulatory logic and is potentially anticompetitive.

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