Coinbase Exec Says Even Crypto Critics Should Back CLARITY Act

Coinbase Vice Chair Ryan VanGrack has called for the passage of the CLARITY Act regardless of whether people support or oppose crypto, as the legislation faces further delays in the Senate.

Speaking on CNBC’s “Squawk Box” on Monday, VanGrack, who previously worked at the SEC, said the CLARITY Act is not an attempt to remove rules from the crypto industry. Instead, he argued that the bill would finally create clear federal rules for an industry that has operated for years without a single framework covering the wider market.

“It’s not about no regulation,” VanGrack said. “This is about imposing regulation on the industry for the first time.”

According to VanGrack, the bill has gained “tremendous momentum” in the Senate. He said lawmakers from both parties have continued working on the legislation, including during the past few weeks and days.

Why the CLARITY Act is delayed

The bill still faces a significant hurdle. The House has already passed its version of the CLARITY Act, but the full Senate must still advance and approve its own version. The legislation requires 60 votes to pass the Senate, meaning supporters will need bipartisan backing.

The Senate Banking Committee previously advanced the legislation in a 15-9 vote, with two Democrats joining Republicans in support. Lawmakers are now working through the remaining disagreements before the updated text is released.

Updated bill faces another delay

The revised text was expected to be released after President Donald Trump met with Senate Republicans to discuss the legislation. However, the release was delayed again last week as negotiations over ethics provisions continued for longer than expected.

According to reports, the crypto industry now expects the updated bill to be released sometime this week. 

House hearing keeps crypto debate alive

While the Senate talks continue behind closed doors, the House Financial Services Committee held a field hearing in New York on Friday to discuss how the CLARITY Act could help bring more blockchain innovation to the United States. No Democratic members attended the hearing.

The hearing did not directly affect the Senate negotiations, but it showed that Republican lawmakers and crypto industry representatives are continuing to make the case for broader digital asset rules.

Why supporters say CLARITY matters

One of the primary arguments behind the bill is that unclear rules have made it harder for crypto companies to operate in the United States. Representative Tim Moore said some digital asset businesses moved overseas because they did not know what rules they were expected to follow. 

VanGrack also said Democrats had secured changes that would strengthen the bill’s consumer protections. These include rules targeting illicit finance, a provision aimed at closing an “FTX loophole,” insider-trading protections and additional disclosure requirements.

“Across the board, the Democrats have obtained meaningful concessions to make what was already a strong consumer protection bill that much stronger,” VanGrack said.

Crypto and Wall Street are moving closer

The debate over the CLARITY Act comes as crypto and traditional finance move closer together. VanGrack pointed to the growing number of banks and major financial institutions entering the crypto market. He said that “not a week goes by” without a major company announcing a new crypto project or investment.

For instance, JPMorgan and Coinbase have already announced a partnership aimed at expanding access to crypto. The bank has also moved to accept bitcoin as loan collateral and allow clients to trade the asset.

Clarity beyond crypto

The interview also turned to a bigger question: whether blockchain technology can be useful even if someone does not believe in bitcoin.

VanGrack said blockchain can offer faster settlement, greater transparency and transactions that operate around the clock. He also acknowledged that questions remain about how crypto financial products should work, including whether some accounts should offer interest or loyalty rewards.

For VanGrack, however, the main issue is not whether everyone becomes a crypto supporter.

“In the absence of clarity, you do not have a federal oversight and framework,” he said. “So whether you love crypto or hate crypto, you should want the CLARITY Act.”

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