The comments came after speculation surfaced that tensions between Coinbase and the administration of U.S. President Donald Trump could derail progress on the CLARITY Act, a bill designed to establish clearer rules for digital asset markets in the United States.
Brian Armstrong, CEO of Coinbase, responded directly on social media, insisting that discussions with the White House remain constructive and ongoing.
According to Armstrong, the administration has not issued threats or ultimatums. Instead, he said officials asked Coinbase to help explore compromises with the banking sector – particularly community banks – a process that is still underway. He added that the company is actively working on proposals that could address bank concerns while preserving core crypto principles.
White House–Coinbase Talks Continue Behind the Scenes
The renewed debate was triggered by a report from journalist Eleanor Terrett, which claimed the White House was considering withdrawing its backing for the CLARITY Act if Coinbase refused to reengage in negotiations over yield-sharing provisions tied to stablecoins.
Armstrong disputed that characterization, saying there is no breakdown in relations and no hostile standoff. He framed the situation as a normal legislative negotiation, emphasizing that the administration has encouraged dialogue rather than confrontation.
While Coinbase did step back from supporting the current version of the CLARITY Act, Armstrong said the decision was driven by substance, not politics. He argued that the latest draft could severely restrict decentralized finance, limit tokenized securities, and block consumers from earning yield on certain digital assets.
Why Coinbase Walked Away From the Current Draft
Coinbase’s withdrawal of support earlier this week marked a turning point in the bill’s progress. Armstrong described parts of the draft as damaging for both innovation and consumers, stating that passing flawed legislation would be worse than delaying regulation altogether.
That stance has contributed to the U.S. Senate Banking Committee postponing its planned markup of the CLARITY Act, giving lawmakers more time to revise the proposal and engage with industry stakeholders.
Despite the pause, Armstrong struck an optimistic tone, suggesting that negotiations are moving toward a revised draft that could return to the Senate within weeks. He reiterated that Coinbase supports regulation in principle, but only if it protects consumers without undermining the foundations of the crypto economy.