The Digital Asset Market CLARITY Act gained stronger customer protection measures after Democratic lawmakers pushed for additional protections during Senate negotiations, according to Coinbase Vice Chair Ryan VanGrack. The US Senate is preparing to vote on legislation expected to become one of the broadest federal laws governing digital assets in the United States.
VanGrack discussed ongoing negotiations during a CNBC interview on July 20. He said Democratic senators added customer protection provisions as lawmakers finalized the bill’s language. VanGrack said the additions would give the legislation “more teeth” as Senate negotiations continued behind closed doors. He added:
“[A]t the end of the day, this is about customer protections. 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].”
Ethics Debate Continues Over Senate CLARITY Act
VanGrack did not mention any progress on ethics rules, although several Democratic senators have argued that such provisions are necessary before offering their support. Earlier reports said Senate negotiators were still waiting for guidance because the White House had not approved the proposed ethics language as of July 20.
The debate has centered on limits that would prevent senior government officials, including presidents, from profiting through digital asset businesses while shaping federal crypto policy. Democratic lawmakers have pointed to President Donald Trump’s financial interests in digital assets while calling for stronger ethics provisions.
Trump reported as much as $1.4 billion in earnings from digital asset ventures in his June financial disclosure. His disclosed holdings included Official Trump (TRUMP), World Liberty Financial, and other crypto investments. Republican senators also met with Trump the previous week to discuss the pending legislation.
VanGrack Defends Need for Federal Crypto Rules
The CNBC interview also turned to blockchain technology beyond digital currencies. VanGrack said blockchain could allow faster settlement, improve transparency, and support transactions around the clock. He added that questions remain about financial products, including whether some accounts should offer interest or loyalty rewards.
VanGrack said the main issue is the lack of federal oversight, regardless of personal views on digital assets. He argued the legislation would create rules that are currently missing across the industry. He further said:
“In the absence of clarity, you do not have a federal oversight and framework. So whether you love crypto or hate crypto, you should want the CLARITY Act.”
Earlier legal disputes also provided background to Coinbase’s current position. During the Biden administration, the US Securities and Exchange Commission (SEC) sued Coinbase, alleging the company operated as an unregistered securities exchange, broker, and clearing agency. Following Donald Trump’s return to office, the agency, under acting SEC Chair Mark Uyeda, dropped the case.
