Brian Armstrong, the CEO of crypto exchange Coinbase, denied reports that the White House is reconsidering its support for the CLARITY Act, a crypto market structure bill. The legislation was almost ready for a markup by the Senate Banking Committee before Senate Banking Chair Tim Scott (R-S.C.) announced he was delaying Thursday morning’s markup of the crypto bill.
The move highlighted the growing divide between banking groups and participants in the crypto space. Some industry executives argue that the crypto bill is positive for the sector, and others argue that it is a major setback for the industry.
Coinbase CEO denies White House clash as crypto market structure bill stalls
The US Senate Banking Committee earlier this week postponed its planned markup of the legislation set for January 15, leaving the next move unclear.
A source close to the Trump administration earlier stated the “White House is said to be furious with Coinbase’s unilateral action on Wednesday, which it apparently was not notified of in advance”. However, the crypto exchange’s CEO denied the rumors cited by journalist Eleanor Terrett that the administration is “furious” with Coinbase.
According to the post on X by Eleanor Terrett, the administration was reportedly viewing the Coinbase support withdrawal as a “rug pull” on the administration and the industry at large. The source said the White House may walk away from the crypto bill unless Coinbase gets back into negotiations.
However, Coinbase CEO Brian Armstrong disputed that claim and said negotiations are still active. “The White House has been super constructive here,” Armstrong said, adding that officials asked Coinbase to try to reach a deal with banks.
Armstrong said Coinbase is working on several ideas aimed at helping community banks in the crypto bill. He also said the company is currently working through those discussions with banking groups.
Also Read: New Russian Crypto Bill Sparks Major Shift in Digital Asset Use
Coinbase withdraws its support for Crypto Bill and lists its objections
Coinbase CEO Brian Armstrong earlier had opposed the crypto bill, saying that it would negatively affect users’ privacy and competition. “After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written,” he posted on X. He also stated the crypto exchange would rather have no bill than a bad bill.”
Among these were objections raised by Armstrong concerning a “de facto ban on tokenized equities,” decentralized finance prohibitions, and general access to financial information of users.
He also criticized the draft’s division of oversight authority, saying it would weaken the Commodity Futures Trading Commission and shift more control to the Securities and Exchange Commission.
In addition, stablecoin yields have become a major issue. Banking groups argue that yield offers could draw deposits away from traditional accounts. Crypto advocates, meanwhile, say limits on yields could slow innovation.
Armstrong warned the stalled draft could “kill rewards” on stablecoins, arguing that the US crypto bill would allow banks to ban their competition.
Senate Banking Committee delay highlights tensions
In addition, supporters argue that the proposal would provide more guidance on crypto markets in the country. The proposed legislation would also define how digital assets are regulated in the USA.
However, the industry is split, with some supporting Coinbase’s position and others arguing that no single entity should have so much influence over the legislation. The issue was described by Terrett’s source as, “This is President Trump’s bill at the end of the day, not Brian Armstrong’s.”
Despite the drawbacks, the White House urged a return to negotiations that would involve both crypto companies and banking groups to come up with an agreement.
Also Read: Crypto Market Cap Ends 2025 at $3 Trillion Amid High Volatility
