The White House is reportedly considering withdrawing its support for a long-awaited crypto market structure bill, according to a journalist familiar with the matter. This follows a public rift with Coinbase, the largest crypto exchange in the United States and one of the staunchest supporters of the bill.
The U.S. crypto market structure bill, formally known as the Digital Asset Market Structure Framework, is designed to establish clear federal rules for how cryptocurrencies and digital assets are regulated in the United States.
Coinbase Opposition Stalls Senate Momentum
Coinbase CEO Brian Armstrong stated he would “rather have no bill than a bad bill,” arguing that the draft legislation fails to treat crypto assets on par with traditional financial services. His objections include the absence of stablecoin yield rewards, what he described as a “de facto ban” on tokenized equities, unlimited government access to user financial records, and a regulatory framework that places the Commodity Futures Trading Commission (CFTC) in a subordinate role to the Securities and Exchange Commission (SEC).
Following Armstrong’s comments, the Senate Banking Committee postponed its anticipated January 15 markup of the bill. Coinbase’s influence is significant. The exchange spent millions of dollars through political action committees during the 2024 election cycle to support pro-crypto candidates, and lawmakers widely view its endorsement as pivotal for the bill’s chances of passing.
White House Reaction Raises Stakes for Crypto Bill
Journalist Eleanor Terrett reported on X that the White House is weighing whether to pull its support entirely if Coinbase does not return to negotiations and agree to a stablecoin yield framework acceptable to major banks. According to a source close to the Trump administration, the White House was “furious” over Coinbase’s “unilateral” decision, which it allegedly was not notified of in advance.
The source characterized Armstrong’s move as a “rug pull” against both the administration and the broader crypto industry, adding that the White House does not believe any single company speaks for the entire sector.
“This is President Trump’s bill at the end of the day, not Brian Armstrong’s,” the source said.
TheStreet Roundtable reached out to the Senate Banking Committee and the White House for a comment and had not received a response by the time of publication.