Brian Armstrong, the CEO of crypto exchange Coinbase, has refuted reports suggesting the White House is contemplating withdrawing support for the CLARITY Act, a proposed crypto market structure bill. He also dismissed rumors indicating that the administration is "furious" with Coinbase.
"The White House has been super constructive here. They did ask us to see if we can go figure out a deal with the banks, which we're currently working on," Armstrong stated.
Earlier on Friday, independent journalist Eleanor Terrett reported a disagreement between Coinbase and the Trump administration. According to her report, the White House was allegedly threatening to withdraw support for the market structure bill if Coinbase did not resume negotiations.
Coinbase had previously withdrawn its support for the CLARITY Act on Wednesday. This decision stemmed from concerns that the legislation, in its current form, could significantly harm the decentralized finance (DeFi) sector, prohibit tokenized stock trading, and prevent the sharing of stablecoin yield with customers.
"We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft," Armstrong commented on Wednesday, accompanying his statement with a list detailing industry concerns regarding the latest draft of the bill.
In response to the ongoing negotiations and industry feedback, the US Senate Banking Committee postponed the scheduled markup of the CLARITY Act. The markup, initially planned for Thursday, has been deferred to allow lawmakers and the crypto industry more time to negotiate mutually acceptable terms.
Armstrong indicated that he anticipates a new bill markup within a "few" weeks. He characterized the provisions in the stalled version of the bill as potentially "catastrophic" for consumers, aligning with the broader sentiment and concerns expressed by many crypto industry executives.
The CLARITY Act Divides the Crypto Industry Amidst Intensifying Stablecoin Yield Debate
The CLARITY Act has introduced a significant division within the cryptocurrency industry. Some industry executives view the bill as a net positive for the sector, despite its acknowledged drawbacks. Conversely, others perceive it as a substantial setback for the industry as a whole.
A central point of contention in the ongoing debate is the provision concerning the sharing of stablecoin yield with customers, which the most recent iteration of the bill expressly prohibits.
Critics of the bill argue that its current framework appears to prioritize banking interests over those of the crypto industry and that it stifles innovation in financial technology.