US crypto regulation is moving into a faster phase, with the CLARITY Act and stablecoin policy now at the center of Washington’s agenda. Coinbase Chief Legal Officer Paul Grewal said the CLARITY Act could pass by the end of summer 2026. At the same time, the White House is urging Congress to move more quickly, while negotiations focus on how stablecoin rewards should be handled and where passive yield should be restricted.
Coinbase backs a compromise on stablecoin rewards
Grewal expressed confidence in the bill after supporting a stablecoin compromise led by Senators Thom Tillis and Angela Alsobrooks. The proposal would allow platforms to offer rewards tied to user activity, while blocking bank-style passive returns on stablecoin balances.
He said banking groups have argued that stablecoin rewards could draw deposits away from banks, but added that no clear evidence has been presented to support that claim. Grewal called on those groups to accept the compromise and let the process move ahead.
White House pushes a tighter legislative schedule
Patrick Witt, executive director of the White House Digital Asset Advisory Committee, said lawmakers are working toward a July 4 target. Under the current plan, the Senate Banking Committee is expected to review the bill this month, and four weeks of June work sessions have been scheduled to prepare for a vote and consider amendments.
Witt also said the main concerns around stablecoin yield have largely been addressed in the current policy talks. Beyond stablecoins, negotiations also include broader conflict-of-interest rules. According to the source material, those rules would apply to all government officials rather than any specific individual or family.
Current policy outline separates rewards from interest-like yield
The stablecoin framework now under discussion draws a line between platform rewards and interest-like returns. Users could receive rewards based on platform activity, but idle stablecoin balances would not earn bank-style yield. The main elements include activity-based rewards, restrictions on passive stablecoin yield, and an effort to reduce concerns that stablecoins might compete directly with traditional deposits.
Market participants are also watching a separate issue: clearer lines between SEC and CFTC oversight. For exchanges and issuers, a more defined structure would reduce legal uncertainty. The source also notes that there have been no immediate price-related results from these developments.
Strategic Bitcoin Reserve update may arrive soon
Separate from the bill itself, Witt said updates on the US Strategic Bitcoin Reserve could come soon. Authorities are auditing and consolidating federal crypto holdings. That process follows an earlier executive order issued under Donald Trump, though a permanent structure would still require formal legislation from Congress.
The next few weeks in Washington will shape how the CLARITY Act develops. Oversight boundaries between securities and commodities regulators, along with the final form of stablecoin rules, remain the main points to watch.