CoinDesk Podcast Network The Battle for Market Structure: Paul Grewal Warns Banks Are Re-Litigating Stablecoin Yield to Protect Institutional Profits
Jan 10, 2026
In this discussion, Paul Grewal, Chief Legal Officer of Coinbase and former federal prosecutor, dives into the contentious landscape surrounding stablecoin yields. He highlights the banking industry’s efforts to limit these rewards and underscores the importance of consumer benefits in crypto. Grewal also shares insights on Coinbase's strategic pivot towards prediction markets and the implications of upcoming political scrutiny. With the 2026 Market Structure bill on the horizon, he reflects on the evolving role of derivatives and the future of market innovations.
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Banks Want To Reclaim Token Yield
- Banks are pushing to keep economic benefits from token activity within institutions rather than share them with users.
- Paul Grewal argues sharing benefits with network participants is core to crypto's purpose and competition should decide winners.
Protect Reward Carveouts In Legislation
- Defend statutory carveouts that let ecosystem participants pay rewards to users for holding stablecoins.
- Resist legislative attempts that would limit rewards to issuers and thereby reduce consumer economic participation.
Repeating Old Debates To Lock Advantages
- The current debate repeats disputes resolved in earlier laws like the Genius Act but aims to lock banks' competitive edge.
- Grewal frames the push as banks relitigating rewards to entrench decades-old business models.