Coinbase executives Paul Grewal and Faryar Shirzad have endorsed the Digital Asset Market Clarity Act, also known as the Clarity for Payment Stablecoins Act (CLARITY), urging Congress to establish a statutory framework that limits the SEC's authority over stablecoins. This legislative push aims to redefine the regulatory boundaries between the SEC and the stablecoin market, moving authority from federal courts to a more permanent statutory basis. The Clarity Act, currently in the Senate, seeks to provide a supervised pathway for payment stablecoin issuers in the U.S., complementing the GENIUS Act, which was enacted in July 2025. Together, these acts aim to establish a clear regulatory framework, requiring stablecoin issuers to maintain one-to-one backing with cash and short-dated U.S. Treasuries, and prohibiting them from engaging in traditional banking activities like lending or leverage. The Senate Banking Committee is advancing the bill, with passage odds currently at 50% according to Polymarket data.