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CLARITY gains momentum
Coinbase backed a tougher Digital Asset Market Clarity (CLARITY) Act after Senate Democrats added customer safeguards, even as Polymarket traders put the bill’s chance of becoming law in 2026 at 31% amid a dispute over ethics rules involving President Donald Trump.
“Democrats added certain consumer protection rules to CLARITY: Coinbase exec Coinbase vice chair Ryan VanGrack said that Democratic lawmakers had added provisions on customer protection to a digital asset market structure bill under consideration in the US Senate”
Coinbase vice chair Ryan VanGrack told CNBC on Monday that Democrats secured stronger consumer protections during closed-door negotiations over the bill’s final Senate text, describing the changes as giving the legislation “more teeth.”
VanGrack said, “At the end of the day, this is about customer protections,” and argued the additional safeguards address gaps in the current US framework for digital asset businesses and their customers.
The reporting also said lawmakers had not released the final Senate text or scheduled a floor vote as of Monday, while Senate Majority Leader John Thune wanted the chamber to consider the bill before lawmakers leave Washington for the August recess.
The dispute centers on Democratic demands for restrictions addressing elected officials’ financial interests in digital assets, including concerns tied to Trump’s crypto activities such as Official Trump (TRUMP) and World Liberty Financial.
Democrats push safeguards
In a separate CNBC appearance, Coinbase vice chair Ryan VanGrack said the CLARITY Act has “tremendous momentum” in the Senate, pointing to the Senate Banking Committee advancing the bill 15-9 and leaving a narrow window before the August recess after the House passed its version.
VanGrack said the Democratic concessions add consumer protections including an illicit-finance framework, closing an FTX loophole, insider-trading safeguards and added disclosures, while preserving registration/examination structures as banks like JPMorgan expand crypto services.
He framed the bill as “It’s not about no regulation,” saying, “This is about imposing regulation on the industry for the first time.”
The reporting tied the remaining hurdle to the Senate path to 60 votes, noting that Republicans cannot clear procedural barriers alone and that Democratic support is linked to ethics language.
It also said President Trump posted on Truth Social in support of Senator Lindsey Graham and urged the Senate to pass the bill “in honor of” the South Carolina lawmaker, while the White House’s reluctance left negotiators without an agreement needed to move it forward.
Ethics dispute threatens vote
The CLARITY Act’s momentum is constrained by the White House’s withheld support for a disputed ethics provision, with the administration not approving the proposed language as of July 20 according to sources cited in the reporting.
“Coinbase vice chair says CLARITY Act is ‘on the one-yard line’ as Democrats strengthen consumer protections The crypto market structure bill could see a Senate vote before August recess, but its odds of becoming law this year sit at roughly 50-50”
That same reporting said the White House had not told Senate negotiators what limits it would accept, and without a clear position lawmakers may require more time to draft an updated version, putting the Republican timetable for a vote before the August recess at risk.
Coinbase’s shift from earlier opposition was described as a change from CEO Brian Armstrong’s January rejection of the previous version, while the latest support adds industry pressure for a compromise even though neither Coinbase nor VanGrack endorsed a specific ethics proposal.
The stakes are also framed in terms of competitiveness and regulatory clarity, with VanGrack arguing in the CNBC interview that “In the absence of clarity, you do not have a federal oversight and framework,” and that “So whether you love crypto or hate crypto, you should want” the CLARITY Act.
Meanwhile, the reporting said Democratic opposition is centered on ethics and conflict-of-interest provisions that some senators consider inadequate, with Senator Elizabeth Warren criticizing the bill’s lack of ethics restrictions and Chris Van Hollen introducing an unsuccessful amendment targeting senior government officials’ crypto industry ties.
