Dispute Over White House Position
Coinbase CEO Brian Armstrong disputed reports that the White House may withdraw support for the CLARITY Act. The dispute came after Coinbase pulled backing for the Senate crypto market structure bill earlier this week. Reports centered on stablecoin yield limits, bank negotiations and claims of White House frustration involving the Trump administration.
The controversy began after Fox Business reporter Eleanor Terrett cited sources close to the Trump administration. According to Terrett, the White House considered pulling support unless Coinbase reached a yield agreement with banks. The source also described Coinbase’s withdrawal as a “rug pull” against policymakers and the broader industry.
Armstrong publicly rejected those claims, stating the White House remained “super constructive” during discussions. However, he confirmed officials asked Coinbase to explore yield compromises with banks. He added that talks continue and that Coinbase is developing proposals aimed at supporting community banks.
Terrett later responded directly to Armstrong, defending her reporting as accurate. Notably, she said White House backing now appears tied to whether Coinbase secures a deal on stablecoin yields. She emphasized that no single company speaks for the entire crypto sector.
Coinbase Withdraws Support for Draft Bill
Coinbase withdrew support for the CLARITY Act after reviewing its latest draft released this week. The exchange cited provisions limiting stablecoin yields, restricting DeFi protocols, and curbing tokenized equity trading. Armstrong stated the company would prefer no bill over a version that harms users.
He also noted that the proposed rules could reduce client returns and restrict decentralized financial services. According to Armstrong, several industry leaders shared similar concerns. However, discussions with lawmakers continued despite the public disagreement.
Senate Delay and Industry Response
Following the dispute, the U.S. Senate Banking Committee postponed a planned markup scheduled for January 15. Sources said lawmakers wanted more time for the crypto industry and banks to reach agreement. The delay followed rising uncertainty across the sector.
Meanwhile, reactions within the crypto ecosystem remained mixed. Some executives viewed the bill as necessary despite flaws. Others argued it favored banks over digital asset firms, especially regarding stablecoin yield sharing.
Armstrong maintained that negotiations continue and that revisions could arrive soon. He reiterated that the White House requested compromise talks, not confrontation.