Coinbase CEO Brian Armstrong has refuted reports suggesting the White House is considering withdrawing support for the CLARITY Act, a significant cryptocurrency market structure bill. Armstrong clarified that the administration has been "super constructive" and has asked Coinbase to help broker a deal with banks, indicating ongoing negotiations.
Key Takeaways
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Coinbase CEO Brian Armstrong denies White House threats to withdraw support for the CLARITY Act.
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Armstrong states the White House has been constructive and is working with Coinbase on bank negotiations.
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Coinbase previously withdrew support for the bill due to concerns over DeFi, tokenized stocks, and stablecoin yields.
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The US Senate Banking Committee postponed the bill's markup to allow for further negotiations.
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The crypto industry remains divided on the CLARITY Act's potential impact.
CLARITY Act Standoff
Recent reports indicated a potential clash between Coinbase and the White House, with claims that the administration threatened to pull support for the CLARITY Act if Coinbase did not resume negotiations on a yield agreement acceptable to banks. Coinbase had previously withdrawn its support for the bill, citing concerns that its current draft could negatively impact decentralized finance (DeFi), ban tokenized stock trading, and prohibit sharing stablecoin yields with customers. Armstrong emphasized the company's stance: "We'd rather have no bill than a bad bill."
Ongoing Negotiations and Industry Division
The US Senate Banking Committee has postponed the scheduled markup of the CLARITY Act to facilitate further discussions between lawmakers and the crypto industry. Armstrong expressed optimism for a revised bill markup within weeks, warning that the stalled version contained "catastrophic" provisions for consumers. The CLARITY Act has created a significant divide within the crypto sector, with some executives viewing it as a net positive for market stability, while others argue it stifles innovation and favors traditional banking interests. A central point of contention is the prohibition of sharing stablecoin yields, which critics believe would hinder DeFi growth.
Sources
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Coinbase CEO denies White House clash, says negotiations are ongoing — TradingView News, TradingView — Track All Markets.
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Coinbase CEO Denies White House Clash Over CLARITY Act Amid Regulatory Delays, KuCoin.
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White House threatens to withdraw support for crypto bill after Coinbase move, calling it a rug pull on the
industry, Crypto Briefing. -
Armstrong Rejects White House Threat Claim, CoinGape.
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