Coinbase vice chair says Democrats added 'more teeth' to the crypto market structure bill. Ethics rules remain the biggest hurdle before a Senate floor vote.
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Senate Democrats secured additional customer protection measures in the latest CLARITY Act negotiations, Coinbase vice chair Ryan VanGrack said Monday. Lawmakers are continuing to finalize the crypto market structure bill ahead of a possible floor vote.
VanGrack told CNBC the revisions give the legislation "more teeth." He said Democratic senators used the talks to strengthen safeguards for digital asset users, addressing what he described as gaps in the existing regime. He did not provide details about the new language.
"[A]t 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]."
Customer protections have moved forward. Ethics provisions tied to elected officials' crypto holdings remain the largest barrier to a bipartisan agreement, according to people familiar with the talks. The White House had not approved proposed ethics language as of July 20, Crypto In America reported, leaving negotiators without guidance on what restrictions the administration would support.
The dispute centers on proposals that would limit how senior government officials, including presidents, could profit from digital asset businesses while shaping federal crypto policy. Democratic lawmakers have argued such safeguards are necessary, citing President Donald Trump's financial interests in the crypto sector. Trump disclosed as much as $1.4 billion in earnings from digital asset ventures including Official Trump (TRUMP), World Liberty Financial and other investments, according to his June financial disclosure.
Republican senators met with Trump last week to discuss the legislation. Democrats have continued pressing for stronger ethics provisions before offering the votes needed to advance the bill. Senate Majority Leader John Thune has acknowledged that Republicans still have not secured the bipartisan support required to overcome procedural hurdles.
The Senate has not released the revised legislative text or scheduled a floor vote.
VanGrack said the negotiations have focused on making consumer protections a central part of the market structure bill rather than a secondary consideration. He declined to describe the revised language.
Other areas remain under active negotiation. Banks and crypto companies have taken opposing positions on whether regulated stablecoins should be allowed to offer rewards, as previously reported by crypto.news. Banking organizations argue such incentives could draw deposits away from traditional banks. Digital asset firms have pushed to preserve activity-based rewards within a regulated system.
Developers of decentralized software are also part of the talks through the proposed Blockchain Regulatory Certainty Act (BRCA). The BRCA would prevent qualifying developers from automatically being treated as money transmitters if they do not control customer funds or execute transactions. Law enforcement organizations have opposed those protections, arguing they could make investigations involving illicit finance more difficult. Blockchain Association CEO Summer Mersinger told Crypto In America she expects the BRCA language to remain in the Senate version despite those objections.
Coinbase's public support for the legislation follows a different position earlier this year. In January, CEO Brian Armstrong said the exchange could not support an earlier version of the CLARITY Act as drafted, a statement widely viewed as contributing to delays during Senate Banking Committee discussions. Since then, Coinbase executives have publicly backed the bill. Chief legal officer Paul Grewal has also urged senators to approve it.
The exchange has remained closely tied to the broader regulatory debate after the U.S. Securities and Exchange Commission sued Coinbase during the Biden administration, alleging it operated as an unregistered securities exchange, broker and clearing agency. The SEC later dismissed the case after Trump took office, when the agency was led by acting Chair Mark Uyeda.
Negotiations are unfolding as lawmakers approach a narrowing legislative window before the Senate's scheduled August recess. The Senate is set to hold its final session before the state work period on Aug. 7. Negotiators have limited time to resolve outstanding disagreements.
White House crypto adviser Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, recently deferred his Judge Advocate General military training to remain in Washington and continue leading negotiations for the administration. Witt said on July 20 on X that his training had been postponed so he could "see this effort through to the end." His decision avoids an immediate leadership change after White House Crypto Council deputy director Harry Jung announced plans to leave government service in the coming weeks.
Even if the Senate approves its version of the CLARITY Act, differences with the House-passed bill would still need to be reconciled before the legislation could reach Trump's desk.
Prediction markets have become increasingly cautious as negotiations continue. Polymarket traders placed the probability of the CLARITY Act becoming law in 2026 at 31%, with unresolved ethics provisions and other disputes weighing on expectations.
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