White House Mulls Crypto Bill Withdrawal Over Coinbase Dispute

The White House reportedly considers retracting support for a cryptocurrency market bill unless Coinbase renegotiates, following unilateral actions criticized as abrupt, according to journalist Eleanor Terrett.

Such a shift could destabilize regulatory frameworks, affecting market confidence and industry relations, though no primary confirmation has validated these claims or any market impact.

White House-Coinbase Tensions Threaten Crypto Bill

According to anonymous sources, the White House is considering withdrawing its support from the cryptocurrency market structure bill. The move stems from Coinbase’s alleged “unilateral action” without notifying and negotiating with the administration ahead of time. This has reportedly upset both the White House and industry stakeholders.

The purported White House decision could reshape the trajectory of US cryptocurrency regulation. Such actions often underline the importance of agreements with established financial sectors before advancing any new protocols or agreements. Future support for the bill remains uncertain, pending official communication.

While no official responses from industry leaders or government officials have been verified, this situation could potentially influence political and market dynamics. Eleanor Terrett’s report mentioned discontent from the White House, yet this has not appeared in direct statements. Key industry figures have been silent on the alleged claims.

Potential Regulatory Shifts Affecting Stablecoins and DeFi

Did you know? Similar instances of government-industry rifts have impacted cryptocurrency legislation, such as back in 2023 when the FIT21 Act saw delays due to industry dissent, affecting temporary altcoin pricing structures.

As of the latest report, USDC remains stable with a price of $1.00, holding a market capitalization of $76.00 billion according to CoinMarketCap. Its 24-hour trading volume sits at $7.17 billion, reflecting a 35.77% decrease. Over the past 90 days, USDC’s price varied by -1.49%.

Insights from the Coincu research team highlight potential regulatory shifts impacting stablecoins. Should the White House proceed with policy changes, pressuring aspects of liquidity and market support may intensify. Historical trends suggest adjustments in DeFi and staking activities may occur under regulated financial environments.

Brian Armstrong, CEO, Coinbase, stated, “We’re committed to working with regulators to ensure that we have a framework that supports innovation and consumer protection.” (Source: Coinbase Official Blog)