Coinbase CEO Denies White House Rift Over CLARITY Act Talks
What Did Brian Armstrong Push Back On?
Brian Armstrong, the chief executive of Coinbase, rejected reports that the White House is considering pulling support for the CLARITY Act, a proposed crypto market structure bill, and denied claims that the administration is angry with the platform. Speaking publicly, Armstrong described the White House’s engagement as constructive rather than confrontational.
“The White House has been super constructive here. They did ask us to view if we can go figure out a deal with the banks, which we’re currently working on,” Armstrong said.
The comments came later than reports circulated late last week suggesting rising tensions between Coinbase and the administration of U.S. President Donald Trump. An earlier report by independent journalist Eleanor Terrett said the White House had warned it could withdraw support for the bill if Coinbase did not return to negotiations.
Investor Takeaway
Why Did Coinbase Pull Its Support?
Coinbase withdrew its backing for the CLARITY Act earlier this week, arguing that the latest draft would cause direct harm to the crypto ecosystem. Armstrong said the bill, as written, would fragileen decentralized finance, block , and ban the sharing of stablecoin yield with customers.
“We’d rather have no bill than a poor bill. Hopefully, we can all get to a better draft,” Armstrong said on Wednesday, alongside a detailed list of industry objections to the current text.
The decision placed Coinbase at odds with some other industry participants who believe that passing a flawed framework is preferable to leaving crypto regulation unresolved. For Coinbase, however, the concern is that the bill would lock in restrictions that are hard to unwind later.
What Happened to the Bill in Congress?
The postponed the scheduled markup of the CLARITY Act, which had been set for Thursday. Lawmakers delayed the process to allow more time for negotiations with industry stakeholders later than multiple firms raised objections to the draft.
Armstrong said he expects a revised version of the bill to return within a few weeks. He described the current draft as “catastrophic” for consumers, echoing similar warnings from other crypto executives who argue the bill favors over digital-asset platforms.
The pause suggests lawmakers are willing to revisit core provisions rather than force the bill through in its present form. Still, the delay leaves the broader question of U.S. crypto market structure unresolved for now.
Investor Takeaway
Why Has the CLARITY Act Split the Crypto Industry?
The bill has exposed deep divisions within the crypto sector. Some executives argue that the CLARITY Act would bring long-needed legal certainty, even if compromises are required. Others view the current language as a step backward that protects banking interests at the expense of innovation.
The most contentious issue is stablecoin yield. The latest draft would prohibit companies from sharing yield generated on stablecoin reserves with customers. Critics say this restriction undermines one of the key consumer benefits of blockchain-based finance and tilts the playing field toward traditional banks.
Opponents also warn that banning or limiting tokenized stock trading would shut down a quick-growing segment of financial technology just as onchain equity models are gaining traction globally.
What Comes Next?
Negotiations are expected to continue behind closed doors between lawmakers, crypto firms, and banking representatives. Armstrong said Coinbase is actively engaging in those discussions, including efforts to reach compromise with banks.
Whether the next draft of the CLARITY Act addresses concerns around DeFi, tokenized assets, and stablecoin yield will likely determine whether the industry reunites behind the legislation or remains divided. For now, the bill’s future depends on whether lawmakers can produce a framework that balances consumer protection with room for crypto-native business models.
