US lawmakers are moving toward a fast decision on the Digital Asset Market Clarity (CLARITY) Act, a bill widely viewed as one of the most comprehensive attempts yet to set federal rules for the crypto industry. With negotiations still underway behind closed doors, advocacy groups and major market participants are now offering a clearer picture of what Democrats and Republicans are arguing over as the Senate weighs its next steps.
In a Monday interview with CNBC, Coinbase vice chair Ryan VanGrack said the final language of the CLARITY Act was being negotiated in the Senate and that Democratic lawmakers had added further customer protections. He characterized those changes as giving the bill “more teeth,” framing the revisions as a corrective to what he described as an inadequacy in the current regulatory landscape. CNBC: Coinbase’s Ryan VanGrack discusses regulation.
Key takeaways
- Coinbase leadership says the CLARITY Act’s ongoing negotiations are increasingly centered on strengthening customer protections.
- Democrats are reportedly seeking additional safeguards beyond market-structure rules, with ethics provisions still a potential sticking point.
- Earlier opposition to the bill as written may have contributed to delays in the Senate Banking Committee markup process.
- President Donald Trump publicly urged the Senate to pass the bill soon, but floor timing remains uncertain while final text is negotiated.
Coinbase ties “customer protections” to the bill’s evolving text
VanGrack’s remarks highlight how the final shape of the CLARITY Act may be determined less by whether lawmakers broadly support the bill and more by what protections it must include for retail customers and other market participants. “At the end of the day, this is about customer protections,” he told CNBC, arguing that the existing system “lacks this infrastructure” and that Democrats used the opportunity to ensure customers come first.
The same interview also comes amid questions about what else could still be required for the measure to clear Democratic support thresholds. VanGrack did not explicitly discuss ethics provisions. However, earlier reporting described those ethics provisions as a likely condition for some Democrats to back the bill. Cointelegraph previously noted US senators opposing the CLARITY Act vote due to concerns that ethics-related requirements must be included.
How early industry resistance may have shaped the legislative timeline
The CLARITY Act’s road to the Senate has not been smooth. According to the CNBC interview context, Coinbase CEO Brian Armstrong may have played a role in slowing an earlier markup of a prior version of the bill in the Senate Banking Committee after he announced in January that the exchange could not support the legislation “as written.”
Since then, multiple Coinbase executives have publicly voiced support for the Senate passing the CLARITY Act, including Coinbase chief legal officer Paul Grewal, who posted on social media after the bill advanced. Grewal’s earlier remarks are referenced here: Paul Grewal on X.
For market participants, that shift matters because it suggests the bill’s revisions may have aligned more closely with industry expectations—at least enough for Coinbase’s leadership to move from objection to endorsement. At the same time, it underscores that congressional text edits can quickly change who is comfortable with a bill’s outcome and when lawmakers can realistically schedule votes.
Politics and process: Trump’s push meets Democratic conditions
Beyond industry input, the CLARITY Act is unfolding in a politically charged environment. Trump has signaled strong support for passing the bill promptly. Earlier coverage notes that after 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, whom he described as a “big supporter.” Cointelegraph reported US Senate session plans CLARITY Act vote.
Reports also indicate the bill has been discussed in meetings connected to Trump and Republican lawmakers. Politico coverage referenced by Cointelegraph described Republican senators meeting with Trump to talk through the measure, amid Democratic concerns about the president’s relationships with crypto. Cointelegraph cited the meeting in Trump to meet with senators over CLARITY Act.
Those concerns are amplified by disclosure details from Trump’s own filings. In June, Cointelegraph reported that Trump disclosed $1.4 billion in earnings tied to his memecoin, Official Trump (TRUMP), his family’s crypto company World Liberty Financial, and other digital asset investments. See: Trump earned more from crypto than real estate.
Meanwhile, Senate Democrats reportedly held a closed-door meeting on Wednesday to evaluate their positions. As of Monday, lawmakers had not released the final text of the bill or scheduled a floor vote, according to the reporting summarized in the source.
Regulatory context: the SEC case against Coinbase and why it still matters
The CLARITY Act’s push also sits against a backdrop of high-profile enforcement. Under the Biden administration, the US Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase alleging it operated as an unregistered securities exchange, broker, and clearing agency. That case was dropped shortly after President Trump took office, with the SEC led by acting chair Mark Uyeda at the time.
For the crypto industry, that history increases the stakes of federal legislation like CLARITY. A comprehensive market-structure bill can be viewed as an attempt to reduce the risk of similar enforcement-style disputes by defining clearer regulatory boundaries. At the same time, the ongoing emphasis on customer protections and potential ethics provisions suggests lawmakers are trying to balance rulemaking with trust and accountability—issues that go beyond technical market definitions.
What to watch next
With the Senate still negotiating the final text and no floor vote scheduled as of Monday, the key question for investors and builders is whether customer-protection updates satisfy Democratic priorities quickly enough to avoid delays tied to ethics-related demands. The bill’s next public drafting steps—and any newly released language—will likely determine whether momentum holds or whether the CLARITY Act returns to committee rather than reaching the full chamber.
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