US expands crypto law with new customer protection rules

The United States is amending the CLARITY Act, its primary crypto legislation, to add additional safeguards for consumers. Democratic lawmakers have inserted the new protections during negotiations, and Coinbase executives have said the changes would give users more certainty when dealing with digital‑asset exchanges. The revised language has not yet been published by the Senate, and a vote date has not been set.

The amendment comes amid broader concerns about U.S. authorities’ ability to compel private‑sector firms to hand over data. Analysts note that even partial compliance with U.S. subpoenas can force companies to expose unencrypted traffic, limiting the usefulness of strong encryption solutions such as Microsoft’s Double Key Encryption. An example cited involves Dutch security provider Solvinity, which decrypts and inspects internet traffic for the Netherlands’ Ministry of Justice, illustrating how regulatory pressure can override encryption safeguards.