Coinbase's attitude towards encryption market structure legislation in the United States has changed. Corporate executives have indicated that the exchange has supported the Senate version of the CLARITY bill after the Democratic Party promoted the inclusion of stronger customer protection provisions. However, there is still no agreement on the ethical provisions surrounding the spread of the benefits of encryption in the family of the Toran, and the question remains whether the bill will be put to a vote before the August recess.
Coinbase changed to support the revised text
In an interview with CNBC on 20 July, Ryan Van Grack, Vice-Chairman of Coinbase, stated that Democrats had sought a stronger consumer protection component in closed negotiations, making the bill “more robust”. He did not disclose specific provisions or indicate whether the Senate had agreed on another more controversial ethical provision.
Van Grack indicated that there were still gaps in the current regulatory framework for digital asset operations in the United States and that additional protective measures were designed to fill those gaps and to give higher priority to client interests. This statement means that Coinbase has supported the current course of negotiations, and the company opposed the earlier Senate draft earlier this year.
In January this year, the CEO of Coinbase Brian Armstrong publicly stated that the company could not support the bill as it was. Since then, Coinbase management has gradually shifted to support the revision process, and Chief Justice Paul Grewal has publicly called for the continuation of the legislative process.
Ethical provisions remain in the Senate process.
As of 20 July, the Senate had not published the final text, nor had it scheduled the entire House for voting. The greatest obstacle remains the ethical provisions. Democrat parliamentarians called for the introduction of restrictions in the bill to address the financial interests of elected officials in the area of digital assets, while the focus of the controversy was on the Trump-related encryption project.
The reports mention that Democratic Trump (TRUMP), World Liberty Financial, and other digital assets related to Tripp himself and his family are of concern to Democrats. Trump disclosed in June this year that the total proceeds associated with its memes, World Liberty Finance and other digital asset holding amounted to approximately $1.4 billion.
According to the source, the White House had not approved the proposed wording of the disputed article as of 20 July, nor had it clarified to the Senate negotiating parties the acceptable limits. Owing to the lack of clarity in the executive branch, members of Parliament may need more time to revise the text, and the Republican party hopes that the timetable for moving the vote forward before the August recess will be put under pressure.
Two party votes versus market expectations.
The Senate majority leader, John Thune, wanted the bill to be considered before the parliamentarians left Washington, but he also acknowledged that the Republicans had not yet reached a cross-party agreement with the Democratic Party. Since the Republicans cannot cross the Senate process alone, the Democrats still need support to move the bill forward.
Last week, Republican senators met with Trump to discuss the bill, but the White House did not publicly state its position on the ethical clause after the meeting. The Democratic Senate also held a closed meeting the day before to assess its support for the bill.
The transaction data on Polymarket show that the market ' s current expectation of the Act becoming law by 2026 has fallen to 31 per cent. While the final text has not been published and the differences between the two parties have not been resolved, substantive progress on the CLARITY bill in the short term will depend on the inclusion of both client protection provisions and ethical restrictions in an acceptable programme.
Regulatory environment has changed more than before
The federal regulatory environment in Coinbase has also changed. During the Biden Government, the United States Securities and Exchange Commission sued Coinbase for operating as an unregistered stock exchange, a broker and a clearing house. When Trump returned to power, the Acting Chairman, Mark Uyeda, under SEC, withdrew the case.
This change removed one of Coinbase ' s major regulatory disputes and further raised the profile of Congress ' s promotion of legislation on the division of labour in the regulation of digital asset markets.