Media: The White House May Abandon the CLARITY Act Because of Coinbase’s Actions
- The review of the CLARITY Act has been put at risk, Eleanor Terrett said.
- According to her, the White House may withdraw its support for the bill if Coinbase does not return to the table.
- Earlier, the exchange publicly criticized the version from the Banking Committee.
- One of the reasons was the ban on paying interest to stablecoin holders.
The White House may completely withdraw its support for the bill on the structure of the cryptocurrency market (CLARITY) after the Coinbase exchange criticized it and pulled out of the negotiation process. This was reported by journalist Eleanor Terrett, citing her sources.
It is worth noting that the reason for the criticism from Coinbase CEO Brian Armstrong was the version of the bill from the Banking Committee in the U.S. Senate. The head of the exchange noted that the company cannot support the document because it introduces a number of restrictions for the industry.
They concern, among other things, the payment of regular income to stablecoin holders. The U.S. banking sector supports a complete ban on such a mechanism. However, its participants have allegedly reached a compromise with the authorities that provides for allowing rewards for active actions, rather than for the mere fact of ownership.
But after Coinbase’s public statement, the Banking Committee postponed consideration of the bill. This delays even further the introduction of a regulatory framework for the industry in the U.S.
According to Terrett’s source, the exchange’s withdrawal from the bill’s working process and its public criticism caused outrage in the White House. If the company does not return to the table and agree to a compromise on stablecoins, the authorities may shelve the bill altogether.
Coinbase CEO himself commented on Terrett’s publication. According to him, the statement is not entirely accurate, but the exchange was indeed asked to reach a consensus with the banks. The company is allegedly already working on some ideas in this direction.
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