Coinbase backed the stricter CLARITY Act after Senate Democrats added safeguards for customers, even as its odds of approval in 2026 dropped to 31% at Polymarket amid a dispute over ethics rules involving President Donald Trump.
summary
- Coinbase supports revised CLARITY Act after Democrats secure stronger customer protections.
- White House resistance to cryptocurrency ethics rules threatens Senate vote before August.
- Polymarket traders estimate that the bill’s chance of becoming law in 2026 is 31%.
Coinbase Vice President Ryan Vangrak He said CNBC reported on Monday that Democrats secured stronger consumer protections during closed-door negotiations on the final text of the bill in the Senate. He described the changes as giving the legislation “more power,” though he did not provide details about the provisions or indicate whether lawmakers had settled the separate ethics dispute.
“At the end of the day, it’s about protecting customers,” Vangraak said.
“The status quo lacks this infrastructure, lacks these protections, and Democrats used this opportunity, wisely, to make sure customers were first in (this bill).”
According to VanGrack, the additional safeguards address loopholes in the current US framework for digital asset companies and their clients. His comments also indicate Coinbase’s support for negotiations after the exchange opposed a previous Senate draft at the beginning of the year.
CEO Brian Armstrong announced in January that Coinbase could not support the legislation as written then, a decision that may have contributed to the Senate Banking Committee’s tokenization delay. Since then, Coinbase executives have 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 released the Senate’s final text and have not set a date for a vote as of Monday. Although Van Grack praised the changes related to consumer protections, he did not say whether recent negotiations had produced an ethics agreement capable of winning enough Democratic votes.
Trump’s ethics dispute holds up Senate agreement
As crypto.news previously I mentionedPolymarket traders cut the probability of the CLARITY Act becoming law in 2026 to 31% as the White House withholds its support for the disputed ethics provision. The administration did not approve the proposed language until July 20, according to sources cited in the report.
Those sources also said the White House did not tell Senate negotiators what limits it would accept. Without a clear position from the administration, the report said lawmakers may need more time to craft an updated version, putting the Republican timeline for a vote before the August recess in jeopardy.
Senate Majority Leader John Thune wants the Senate to consider the bill before lawmakers leave Washington, but he acknowledged that Republicans have not reached a bipartisan agreement. Because the party cannot remove the Senate’s procedural barriers on its own, Thune will need support from Democrats to advance the legislation.
Democratic lawmakers have tied their support to restrictions addressing elected officials’ financial interests in digital assets. Their concerns center on Trump’s cryptocurrency activities, including Official Trump (TRUMP), World Liberty Financial and other investments linked to the president and his family.
In June, Trump Disclosure of $1.4 billion In profits associated with his memecoin, World Liberty Financial and other digital asset holdings. Democrats have cited such financial ties while… Pressure for a language of ethics In market structure legislation, according to reports on Senate negotiations.
Republican senators met with Trump on Thursday to discuss the bill, though the meeting did not result in a public White House position on the disputed provision. Senate Democrats held their closed meeting the day before to assess whether they could support the legislation.
Coinbase support increases pressure for compromise
Trump did He urged the Senate to approve the CLARITY Act and used 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 Republican nominee from South Carolina, whom Trump described as a strong supporter of the proposal.
Despite Trump’s public support of the bill, the White House’s reluctance to accept ethics language has left negotiators Without agreement necessary to move forward. The dispute pits the administration’s request for fast-track passage against Democratic demands for rules covering officials with financial interests tied to cryptocurrencies.
The recent support from Coinbase gives the bill an industry endorsement from one of the largest cryptocurrency exchanges in the United States. It also represents a change from Armstrong’s rejection of the previous release in January, though 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. Under the Biden administration, the Securities and Exchange Commission File a lawsuit against the exchange On charges of operating as an unregistered securities exchange, broker, and clearing agency.
After Trump took office, the SEC, headed by Mark Ueda, dropped the case. the Agency withdrawal Coinbase has cleared one of its biggest regulatory disputes as Congress continues to work on legislation aimed at defining oversight of digital asset markets.
For Senate negotiators, the unresolved issue remains whether stronger customer protections can be tied to ethics restrictions that satisfy Democrats and have the White House agree. Until lawmakers publish the revised text and gain enough bipartisan support, Thon’s coveted vote before the August recess remains uncertain, while Polymarket traders continue to price a slim chance of its release this year.
