Coinbase CEO Brian Armstrong has pushed back against reports that the White House is pulling support for the CLARITY Act, stating that discussions with the administration remain constructive.
Summary of Key Points
- •Brian Armstrong stated that reports suggesting the White House has withdrawn support for the CLARITY Act are inaccurate, and ongoing discussions are active.
- •Coinbase previously withdrew its backing for the bill due to concerns regarding stablecoin yields, limitations on DeFi, and the balance of regulatory oversight.
- •Negotiations are continuing with banks and policymakers, with lawmakers aiming to introduce revised language in early 2026.
Clarification on White House Stance
In a post shared on X on Sunday, January 18, Armstrong clarified that a report indicating the White House had withdrawn its support was not accurate. He explained that the administration had requested Coinbase to explore the possibility of reaching a compromise with banks, particularly regional lenders, and confirmed that these conversations are currently in progress. Armstrong further noted that the bill’s potential impact on smaller banks is a primary issue under discussion.
These comments followed reporting by journalist Eleanor Terrett, who cited an anonymous source claiming the White House was displeased with Coinbase's decision to withdraw support for the CLARITY Act earlier in January without prior notification. According to that report, the move was perceived as a betrayal and risked undermining the momentum behind the legislation. Terrett later maintained the accuracy of her reporting following Armstrong’s response.
My reporting was airtight and accurate.
— Eleanor Terrett (@EleanorTerrett) January 17, 2026
You also just cited the central point of my story as correct: that the White House asked Coinbase to go secure a deal on yield. My reporting is that WH support now appears to be contingent on that outcome. https://t.co/rLn839kfqr
Core Issues: Stablecoin and DeFi Provisions
The CLARITY Act is intended to establish clear regulatory boundaries for digital assets within the United States, encompassing exchanges, DeFi platforms, stablecoins, and tokenized assets. Coinbase had publicly withdrawn its support for the CLARITY Act, citing specific concerns with the most recent Senate draft. Armstrong articulated that the proposed language could potentially restrict DeFi activities, limit tokenized equity products, and prevent stablecoin issuers from offering yield-like rewards to their users.
He also expressed concerns regarding expanded government access to financial data and a proposed shift in regulatory authority towards the Securities and Exchange Commission, potentially at the expense of the Commodity Futures Trading Commission. The withdrawal of support had immediate repercussions, leading to the postponement of a scheduled markup session in the Senate Banking Committee to allow additional time for negotiations, thereby slowing the bill’s progress after its passage in the House in 2025.
Ongoing White House Engagement
Despite reports of friction, Armstrong indicated that there has been no breakdown in communication. He characterized recent discussions with the White House as “super constructive” and emphasized that the administration is focused on identifying a path that effectively balances crypto innovation with the concerns of traditional financial institutions. Stablecoin yields have become a significant point of contention, with banks expressing concerns that crypto-issued returns could divert deposits from the traditional banking system.
Industry sentiment remains divided. Some executives advocate that passing a compromised version of the bill would still provide essential regulatory clarity, while others believe that codifying restrictive language could have long-term detrimental effects on the sector. Currently, negotiations are ongoing, with revised language anticipated for discussion in the upcoming weeks as lawmakers endeavor to reach an agreement that can advance in the Senate.