Coinbase backed a tougher CLARITY Act after Senate Democrats added safeguards for customers, even as its 2026 approval odds have fallen to 31% on Polymarket amid a dispute over ethics rules involving President Donald Trump.
Summary
- Coinbase supports revised CLARITY Act after Democrats won stronger protections for customers.
- White House resistance to cryptoethics rules threatens a Senate vote before August.
- Polymarket traders put the probability of the bill becoming law in 2026 at 31%.
Ryan VanGrack, Vice President of Coinbase said CNBC on Monday that Democrats had secured greater consumer protections during closed-door negotiations over the bill’s final text in the Senate. He described those changes as giving the legislation “more teeth,” though he did not provide details about the provisions or indicate whether lawmakers had resolved the ethics dispute separately.
“At the end of the day, it’s about protecting the customer,” VanGrack said.
“The status quo lacks this infrastructure, it lacks these protections, and Democrats took this opportunity, wisely, to make sure that customers were first and foremost in [this bill].”
According to VanGrack, the additional safeguards address gaps in the current US framework for digital asset companies and their clients. His comments also indicate Coinbase’s support for the negotiations after the exchange opposed an earlier Senate draft earlier in the year.
CEO Brian Armstrong announced in January that Coinbase could not support the legislation as it was drafted at the time, a decision that may have contributed to a delay in the Senate Banking Committee’s markup. Coinbase executives have since publicly supported efforts to pass a revised bill, and Chief Legal Officer Paul Grewal is among those calling for the process to continue.
Lawmakers have not published the final Senate text nor have they scheduled a floor vote for Monday. While VanGrack praised the consumer protection changes, she did not say whether the latest negotiations had produced an ethical agreement capable of winning enough Democratic votes.
Trump ethics row holds up Senate deal
Like crypto.news above reportedPolymarket merchants have reduced the likelihood of the CLARITY Act becoming law in 2026 to 31%, while the White House refuses to support a controversial ethics provision. The administration had not approved the proposed language as of July 20, according to sources cited in the report.
Those sources also said the White House had not told Senate negotiators what limits it would accept. Without a clear position from the administration, the report says lawmakers could need more time to draft an updated version, jeopardizing the Republican timeline for a vote before the August recess.
Senate Majority Leader John Thune wants the chamber to consider the bill before lawmakers leave Washington, but has acknowledged that Republicans have not reached a bipartisan agreement. Because the party cannot remove the Senate’s procedural barriers on its own, Thune would need the support of Democrats to advance the legislation.
Democratic lawmakers have tied their support to restrictions that address elected officials’ financial interests in digital assets. Their concerns center on Trump’s crypto activities, including Trump Official (TRUMP), World Liberty Financial, and other investments linked to the president and his family.
In June, Trump revealed $1.4 billion in profits tied to its memecoin, World Liberty Financial and other digital asset holdings. Democrats have cited such financial connections while pushing for ethical language in market structure legislation, according to reports of Senate negotiations.
Republican senators met with Trump on Thursday to discuss the bill, although the meeting did not produce a public position from the White House on the challenged provision. Senate Democrats held their own closed-door meeting a day earlier to assess whether they could support the legislation.
Coinbase support increases pressure for a compromise
Trump has urged the Senate pass the CLARITY Act and took advantage of the death of Senator Lindsey Graham to renew that call. In a social media post last week, the president asked senators to pass the legislation “in honor” of the South Carolina Republican, whom Trump described as a strong supporter of the proposal.
Despite Trump’s public support for the bill, the White House’s reluctance to accept ethics language has left negotiators without an agreement necessary to move it forward. The disagreement puts the administration’s request for quick approval against Democratic demands for rules covering officials with financial interests tied to cryptocurrencies.
Coinbase’s latest endorsement gives the bill industry backing from one of the largest U.S. crypto exchanges. It also represents a change from Armstrong’s rejection of the previous version in January, although neither Coinbase nor VanGrack have publicly endorsed a specific ethics proposal.
Coinbase’s relationship with federal regulators has also changed since Trump returned to office. During the Biden administration, the Securities and Exchange Commission sued the exchange for allegedly operating as an unregistered stock exchange, brokerage and clearing agency.
After Trump took office, the SEC, under acting chairman Mark Uyeda, dropped the case. He agency withdrawal eliminated one of Coinbase’s largest regulatory disputes as Congress continued to work on legislation aimed at defining oversight of digital asset markets.
For Senate negotiators, the unresolved question remains whether stronger customer protections can be combined with ethical restrictions that satisfy Democrats and receive approval from the White House. Until lawmakers release revised text and garner enough bipartisan support, Thune’s desired vote before the August recess remains uncertain, while Polymarket merchants continue to price in a low chance of enactment this year.
