Debate over the CLARITY Act intensified as Coinbase's top policy official pushed back against national security concerns. Faryar Shirzad, Coinbase Chief Policy Officer, said unclear crypto rules create greater risks and that the legislation brings crypto platforms under the same national security standards as traditional banks.
Coinbase: Bill Bolsters AML and Sanctions Rules
Shirzad argued the CLARITY Act mandates compliance with federal anti-money laundering laws rather than reducing oversight. It expands the Treasury Department's authority to identify and block sanctions evasion involving foreign adversaries. The bill also allocates more funding to the Financial Crimes Enforcement Network to combat state-backed cybercrime. Shirzad added that the legislation lets crypto platforms freeze suspicious transactions when law enforcement requests it — moves he said strengthen oversight.
Senator Warren: Bill Could Weaken Sanctions
Senator Elizabeth Warren renewed her criticism, sharing an opinion piece from a former National Security Council official focused on Iran. She argued the CLARITY Act, in its current form, could make sanctions evasion easier. Warren and ranking Democrats from five committees also requested hearings into President Trump's crypto holdings.
Senate Panels Merge Drafts Before August Recess
Staff from the Senate Banking Committee and Agriculture Committee continue merging separate proposals into a single legislative draft. A unified version could be released before lawmakers leave for the August recess. The CLARITY Act previously passed the Senate Banking Committee in May 2026. Polymarket shows the bill's passage odds this year at 46%.
Coinbase GC Leaves, Market Eyes Bill's Momentum
Coinbase's leadership transition has drawn attention amid the legislative fight. Chief Legal Officer Paul Grewal announced his departure after six years. Grewal had led Coinbase's legal battles with the SEC while supporting both the GENIUS Act and the CLARITY Act. Some market participants now question whether the bill has lost steam, with commentators linking Grewal's exit to the uncertain timeline.