Talks over the Clarity Act, a U.S. crypto market structure bill, are entering the final stage, an outlook said. With the industry and banks clashing over whether to allow interest, or rewards, on stablecoins, an agreement is close, it said.

On April 1, local time, Paul Grewal (폴 그리월), chief legal officer at Coinbase, said in a recent interview with Fox Business that "we are very close to a deal," blockchain outlet The Block reported. He stressed that progress was being made not only on the stablecoin rewards issue but also on the overall structure of the bill.

The biggest issue in the Clarity Act is whether platforms would be allowed to offer interest or rewards simply for holding stablecoins. The banking sector strongly opposes this. It says if crypto platforms provide returns on idle balances, large amounts of existing bank deposits could leave.

Grewal countered that concerns about deposit outflows have not been proven in the real world. "It is theoretically possible, but there is absolutely no evidence of deposit outflows in practice," he said, arguing that the stablecoin rewards issue should not be conflated with other management challenges facing banks.

The legislative timetable may also pick up pace. Grewal said the Senate Banking Committee could enter the markup process within weeks, and he expressed hope it could then lead to a floor vote. He also noted that no specific agreement or schedule has been finalised.

Coinbase has publicly maintained its opposition to provisions banning stablecoin rewards. Chief Executive Brian Armstrong has also argued that such regulation could hamper innovation and limit consumer choice.

The market environment, meanwhile, is not easy. Coinbase shares have fallen about 50 percent over the past 6 months, the outlet said, and closed at $172.99 on March 31. As the broader crypto market downturn has dragged on, it was seen as having affected company performance and investor sentiment.

Even so, Coinbase is placing weight on long-term strategy. "The company is looking not at next quarter or next year, but at the next 10 years, 25 years and 50 years," Grewal said, explaining that it aims to build infrastructure that changes the broader financial system beyond simple trading.

A key question going forward is how the stablecoin rewards provision will be reflected in the bill. With banks' deposit outflow concerns set against the industry's pushback on hampering innovation, the final wording is expected to significantly alter stablecoin business models and the competitive landscape in the United States.