Coinbase Chief Legal Officer Paul Grewal has told lawmakers they cannot back the CLARITY Act while opposing crypto rewards. His public intervention comes as Senate stablecoin yield negotiations enter a critical stretch.

The pushback arrived in a public post on X. Grewal framed the debate as a binary choice for legislators weighing the Tillis-Alsobrooks yield compromise.

The Senate draft from Thom Tillis and Angela Alsobrooks would ban passive yield on stablecoin balances. It would permit only narrow activity-based rewards tied to payments, transfers, or platform use. Banking groups have lobbied for an even tighter restriction. They argue that rewards on idle balances could trigger deposit flight from traditional banks.

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