An interesting plot has emerged from the ongoing discussions on the Digital Asset Market CLARITY Act of 2025.
Coinbase Chief Legal Officer (CLO) Paul Grewal, in a recent appearance on social media, shared his hopes for the issuance of cryptocurrencies. He believes the US is on the brink of a major crypto crisis despite bankers’ denials.
More importantly, Grewal revealed that the cooperation between crypto and banks will probably go through within the next 48 hours.
I am confident that we will see progress.
However, he also said,
Some key elements of the bill are very important to ensure that President Trump’s vision of the United States as a crypto capital is realized.
Coinbase’s CLO is subject to CLARITY Act clauses
Explaining his opinion, Coinbase CLO emphasized that the rules may be different for banking and crypto because “the game is very different”.
Comparing traditional banks to stablecoins, Grewal highlighted how banks operate in micro-lending – where they have limited holdings and focus on deposits and lending.
However, as the ongoing ‘harvest generation’ debate rages on, critics believe that the stablecoin could stop people withdrawing money from the bank. But in his defence, Grewal rejected the idea, saying,
There has been no evidence of deposit flight.
He also emphasized how the GENIUS Act was the first crypto law and that the CLARITY Act is the last line of the regulatory process.
The change in attitude surprises adults
This hope from Grewal comes after Coinbase recently took action. For those who don’t know, the backlash forced Patrick Witt, executive director of the President’s Council on Digital Assets, to issue a statement. A hidden warning at Coinbase.
However, after hearing Paul Grewal’s change. Witt expressed his surprise.
Meanwhile, Polymarket’s challenges for the CLARITY Act signed into law in 2026 confirmed positive sentiment, as it stood at 65% at the time of reporting.
Brief Summary
- Paul Grewal’s optimism regarding the CLARTY Act surprises Patrick Witt, considering Coinbase’s past actions.
- Polymarket odds rose to 65%, reflecting this optimism.
