Democrats Add Consumer Protection Rules to CLARITY Act, Coinbase Exec Says

Democratic lawmakers have inserted new customer protection provisions into the Digital Asset Market Clarity Act during closed-door Senate negotiations, according to Coinbase vice chair Ryan VanGrack.

Coinbase Executive Details Bill Changes

Speaking in a Monday interview with CNBC, VanGrack said Democrats used the negotiation process to strengthen protections for everyday customers, giving the bill what he described as more teeth. He stated that the current regulatory setup lacks the infrastructure needed to safeguard customers, and that Democratic lawmakers pushed to place customer interests at the center of the legislation. VanGrack did not comment on whether ethics provisions, which many Democrats have called a condition for their support, had been addressed.

Coinbase’s Shifting Position

The comments follow a period of internal disagreement within Coinbase over the bill. CEO Brian Armstrong had delayed an earlier Senate Banking Committee markup in January by saying the exchange could not back the legislation as drafted. Since then, other Coinbase leaders, including chief legal officer Paul Grewal, have voiced public support for Senate passage.

Political Backdrop

The bill carries backing from President Donald Trump, who recently urged senators to pass it in honor of the late Senator Lindsey Graham. Republican lawmakers met with Trump last week to discuss the legislation as Democrats raised concerns over the president’s own crypto holdings, including earnings tied to his TRUMP memecoin and World Liberty Financial. Senate Democrats held a closed-door meeting last Wednesday, and as of Monday, no final bill text or floor vote date had been announced.