Coinbase CEO denies White House clash on CLARITY Act talks
Coinbase CEO Brian Armstrong rejected reports that the White House is considering withdrawing support for the CLARITY Act, a proposed crypto market structure bill, and said discussions with the administration remain active. Armstrong said the administration has been constructive and asked Coinbase to work toward an agreement with banks. He added that the industry is developing proposals intended to assist community banks under the CLARITY framework.
On Friday, independent journalist Eleanor Terrett reported a dispute between Coinbase and the administration of U.S. President Donald Trump, including a suggestion that the White House could pull backing for the bill unless Coinbase reentered negotiations.
Coinbase withdrew its support for the CLARITY Act on Wednesday, citing concerns that the bill would significantly weaken decentralized finance (DeFi), prohibit tokenized stock trading, and prevent platforms from sharing stablecoin yield with customers. Armstrong said the company preferred no legislation to a flawed measure and expressed hope for a revised draft, sharing a list of industry concerns about the latest version.
The U.S. Senate Banking Committee postponed the CLARITY Act’s scheduled markup—initially planned for Thursday—to allow additional negotiations between lawmakers and the crypto industry.
Armstrong said he anticipates a new markup within a few weeks and described the suspended draft’s provisions as highly detrimental to consumers, aligning with broader concerns voiced by crypto industry executives.
CLARITY Act divides industry amid dispute over stablecoin yield restrictions
The CLARITY Act has split industry opinion, with some executives viewing the proposal as a net positive despite trade-offs, while others consider it a substantial setback for the sector.
The central point of contention is the latest draft’s prohibition on sharing stablecoin yield with customers.
Critics argue the measure favors banking interests over crypto innovation and could slow advances in financial technology.
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