Coinbase CEO Pushes Back on Reports of White House Crypto Bill Showdown

TLDR

• Coinbase CEO Brian Armstrong denied reports that the White House is pulling support for the CLARITY Act crypto bill
• Armstrong said the administration asked Coinbase to negotiate with banks, particularly to help community banks
• Coinbase withdrew support for the bill on Wednesday over concerns about DeFi restrictions and stablecoin yield prohibitions
• The US Senate Banking Committee postponed the CLARITY Act markup after Coinbase’s withdrawal
• Armstrong expects a new bill version within a few weeks and called current provisions “catastrophic” for consumers

Coinbase CEO Brian Armstrong denied reports of a conflict with the Trump administration over the CLARITY Act. He said the White House has been “super constructive” in ongoing negotiations.

The denial came after rumors spread that the administration threatened to withdraw support for the crypto market structure bill. Independent journalist Eleanor Terrett reported the White House was considering pulling backing if Coinbase did not return to negotiations.

Armstrong said the administration asked Coinbase to work out an agreement with banks. The focus is on helping community banks benefit from the legislation.

Coinbase withdrew its support for the CLARITY Act on Wednesday. The company cited concerns that the bill would harm the decentralized finance sector.

The legislation would also ban tokenized stock trading. It prohibits sharing yield from stablecoins with customers.

Senate Postpones Bill Markup

The US Senate Banking Committee postponed the scheduled markup of the CLARITY Act. The markup was originally set for Thursday.

Lawmakers delayed the process until they can negotiate more acceptable terms with the crypto industry. Armstrong expects a new bill markup within a few weeks.

He described the provisions in the current version as “catastrophic” for consumers. Many crypto industry executives share these concerns.

The withdrawal sent shockwaves through the crypto sector. The Senate canceled the hearing just 12 hours before it was scheduled to begin.

Industry Split Over Stablecoin Yield

The CLARITY Act has created division within the crypto industry. Some executives view the bill as a net positive despite its drawbacks.

Others see it as a major setback for the sector. The main point of debate is the prohibition on sharing stablecoin yield with customers.

Critics say the bill protects banking interests over crypto innovation. They argue it kills innovation in financial technology.

The debate has sparked discussion about whether traditional banks are trying to limit crypto competition. Community banks have been a particular focus of the negotiations.

Armstrong’s latest comments suggest negotiations are ongoing between crypto firms, banks, and lawmakers. He indicated that solutions are being developed to address concerns from all parties.

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