Coinbase CEO disputes report of White House pulling CLARITY Act support

Coinbase CEO Brian Armstrong has pushed back against reports that the White House is pulling support for the CLARITY Act, saying talks with the administration remain constructive.

In a post shared on X on Sunday, Jan. 18, Armstrong said a report suggesting the White House had withdrawn its support was inaccurate.

He explained that the administration had asked Coinbase to explore whether a compromise could be reached with banks, particularly regional lenders, and said those conversations are now underway.

Armstrong added that the bill’s impact on smaller banks is a central issue being discussed.

The comments follow reporting by journalist Eleanor Terrett, who cited an anonymous source claiming the White House was frustrated by Coinbase’s decision to pull support for the CLARITY Act earlier in January without prior notice.

According to that account, the move was viewed as a betrayal and risked undermining momentum behind the legislation. Terrett later stood by her reporting after Armstrong’s response.

Dispute centers on stablecoin and DeFi provisions

The CLARITY Act is designed to define regulatory boundaries for digital assets in the United States, covering exchanges, DeFi platforms, stablecoins, and tokenized assets.

Coinbase publicly withdrew its support for the CLARITY Act, citing concerns with the latest Senate draft. Armstrong said the proposed language could limit DeFi activity, restrict tokenized equity products, and block stablecoin issuers from offering yield-like rewards to users.

He also raised concerns about expanded government access to financial data and a shift in regulatory authority toward the Securities and Exchange Commission at the expense of the Commodity Futures Trading Commission.

The withdrawal had immediate consequences. A scheduled markup session in the Senate Banking Committee was postponed in to allow more time for negotiations, slowing the bill’s progress after it passed the House in 2025.

White House engagement remains ongoing

Despite reports of strain, Armstrong said there is no breakdown in relations. He described recent talks with the White House as “super constructive” and said the administration is focused on finding a path that balances crypto innovation with the concerns of traditional financial institutions.

Stablecoin yields have emerged as a key sticking point, with banks arguing that crypto-issued returns could draw deposits away from the banking system.

Industry opinion remains divided. Some executives have argued that passing a compromised version of the bill would still provide much-needed regulatory clarity, while others believe locking in restrictive language could damage the sector for years.

For now, negotiations continue, with revised language expected to be discussed in the coming weeks as lawmakers look for a deal that can move forward in the Senate.