Democrats added consumer protection provisions to the Digital Asset Market Clarity (CLARITY) Act during final Senate negotiations, according to Coinbase vice chair Ryan VanGrack in a Monday CNBC interview. VanGrack said the amendments gave "more teeth" to the legislation by prioritizing customer protections. The CLARITY Act is expected to be the most comprehensive piece of legislation affecting the crypto industry, with a Senate floor vote anticipated soon, though no date has been scheduled as of Monday.
VanGrack Describes Democratic Amendments to CLARITY Act
In the Monday CNBC interview, VanGrack stated that Democratic lawmakers added additional protections for customers during final negotiations over the bill's text in the Senate. "At the end of the day, this is about customer protections," VanGrack said. "The status quo lacks this infrastructure, lacks these protections, and the Democrats used this opportunity, wisely, to make sure that customers were first and foremost in this bill."
VanGrack did not explicitly mention any progress on adding ethics provisions to the bill. Many Democrats previously said ethics provisions would be necessary for their votes.
Coinbase Shifted Position After January Opposition
Coinbase CEO Brian Armstrong announced in January that the exchange could not support the legislation as written, potentially contributing to a delay for a markup of an earlier version of the bill in the Senate Banking Committee. Since then, several Coinbase executives have publicly stated support for the Senate passing the bill, including chief legal officer Paul Grewal.
SEC Dropped Coinbase Lawsuit After Trump Took Office
Under the Biden administration, the US Securities and Exchange Commission filed a lawsuit against Coinbase for allegedly operating as an unregistered securities exchange, broker and clearing agency. The case was dropped shortly after US President Donald Trump took office, with the agency headed by Trump's pick for acting SEC chair, Mark Uyeda.
Trump Called for CLARITY Act Passage After Graham's Death
Last week, following the death of Senator Lindsey Graham, Trump said on social media that members of the Senate should pass the CLARITY Act "in honor of" the South Carolina lawmaker, who Trump claimed had been "a big supporter" of the bill. Republican lawmakers reportedly met with Trump on Thursday to discuss the bill amid Democrats' concerns about the president's ties to the crypto industry.
In June, Trump disclosed $1.4 billion in earnings related to his memecoin, Official Trump (TRUMP), his family crypto company World Liberty Financial and other digital asset investments.
Senate Democrats Held Closed-Door Meeting on Wednesday
Senate Democrats reportedly held a closed-door meeting on Wednesday to assess their positions on the CLARITY Act. As of Monday, lawmakers had not released the final text of the bill or scheduled a floor vote.
FAQ
What consumer protections did Democrats add to the CLARITY Act?
According to Coinbase vice chair Ryan VanGrack in a Monday CNBC interview, Democrats added provisions during final Senate negotiations to give "more teeth" to customer protections in the legislation. VanGrack stated the amendments ensured customers were "first and foremost" in the bill, though he did not provide specific details about the added provisions.
Why did Coinbase initially oppose the CLARITY Act in January?
Coinbase CEO Brian Armstrong announced in January that the exchange could not support the legislation as written, potentially contributing to a delay for a markup of an earlier version in the Senate Banking Committee. Since then, several Coinbase executives including chief legal officer Paul Grewal have publicly stated support for the Senate passing the bill.
What is the current status of the CLARITY Act vote?
As of Monday, US Senate lawmakers had not released the final text of the CLARITY Act or scheduled a floor vote. Senate Democrats reportedly held a closed-door meeting on Wednesday to assess their positions on the bill, while Republican lawmakers met with President Trump on Thursday to discuss the legislation.
