Brian Armstrong Rejects Rumors of Fallout With White House Over Crypto Bill

TLDR

• Coinbase pulled support for the CLARITY Act over DeFi and stablecoin concerns.
• Armstrong says the White House remains cooperative and open to talks.
• A Senate hearing on the bill was postponed due to industry disagreement.
• The bill bans sharing stablecoin yields, raising concerns across the sector.

Coinbase CEO Brian Armstrong has denied reports of a fallout between the crypto exchange and the Trump administration regarding the CLARITY Act. The CEO clarified that the White House remains supportive and constructive, despite rumors of policy reversals and threats to withdraw backing for the crypto market structure bill.

Armstrong Denies Rift With the White House

Coinbase CEO Brian Armstrong rejected claims that the Trump administration is frustrated with the crypto exchange. In a statement, Armstrong said, “The White House has been super constructive. They did ask us to see if we could figure out a deal with the banks.” His comments followed journalist Eleanor Terrett’s report suggesting the White House was considering pulling support for the CLARITY Act unless Coinbase resumed talks.  

Armstrong disputed this, stating that discussions were ongoing and focused on resolving concerns raised by community banks. He confirmed Coinbase is actively working with policymakers to find a balanced solution and described the administration’s involvement as helpful, not adversarial.

Coinbase Withdraws Backing Over Industry Concerns

Coinbase announced its withdrawal from supporting the CLARITY Act earlier this week. The company said the draft bill would harm the decentralized finance (DeFi) sector and limit innovation.

Armstrong stated, “We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft.” The company raised specific concerns about bans on tokenized stock trading and restrictions on stablecoin yield sharing with customers.

The exchange emphasized the need for clearer, more industry-friendly rules. Armstrong described the current draft as containing provisions that would be “catastrophic” for consumers and crypto users.

Senate Markup Delayed as Agreement Remains Elusive

The U.S. Senate Banking Committee postponed its planned markup of the bill, which was originally set for January 15. Sources said the committee made the decision to delay until lawmakers and crypto industry leaders can agree on terms.

This development followed Coinbase’s exit from the negotiations, which many viewed as a key factor. The committee aims to ensure that the bill can move forward with broader support from both the financial and crypto sectors.

Armstrong said a new version of the bill could be introduced in a few weeks. He also mentioned ongoing talks with banks, especially community banks, which may be considered in future drafts.

Crypto Industry Split on CLARITY Act’s Approach

The CLARITY Act has divided crypto executives and firms. Some view it as a needed step to create clear rules for digital assets, while others believe it limits innovation and favors traditional banks.

At the center of the debate is the bill’s restriction on sharing yield from stablecoins with customers. Critics argue that this change would harm crypto users and give banks a competitive edge.

Coinbase has spent millions lobbying for market structure reform, but its recent withdrawal reflects broader dissatisfaction with the current proposal. The debate continues as lawmakers look to balance innovation with financial regulation.

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