The White House is considering withdrawing its support for the proposed crypto market structure legislation following a sharp fallout with Coinbase, according to a source close to the Trump administration.
🚨SCOOP: The White House is considering pulling its support for the crypto market structure bill entirely if @coinbase does not come back to the table with a yield agreement that satisfies the banks and gets everyone to a deal, a source close to the Trump administration tells me.…
— Eleanor Terrett (@EleanorTerrett) January 17, 2026
The move comes after Coinbase reportedly pulled its backing for the Digital Asset Market Clarity Act, triggering frustration among senior administration officials and lawmakers involved in negotiations.
Fox Business reporter Eleanor Terrett said the White House is “furious” over what it views as Coinbase’s unilateral decision to step away from the bill without prior notice.
In a Sunday post on X, Terrett cited an administration source who described the exchange’s action as a “rug pull” against the White House and the broader digital asset industry, which had been working toward a compromise framework for months.
Key Dispute Points
At the center of the dispute is a proposed yield-related agreement that administration officials believe is critical to securing buy-in from traditional banks and other financial institutions.
According to the source, the White House had expected Coinbase to return to the negotiating table to help finalize a deal acceptable to all stakeholders. Instead, Coinbase’s sudden withdrawal has raised concerns that the company is prioritizing its own interests over a unified industry position.
“The White House does not believe that one company speaks for the entire industry,” the source told Terrett, emphasizing that Coinbase’s stance does not reflect the views of all crypto firms. The source added that the legislation is ultimately being driven by President Donald Trump’s administration, not by any single corporate executive. “This is President Trump’s bill at the end of the day, not Brian Armstrong’s,” the source said, referring to Coinbase’s CEO.
About the Digital Asset Market Clarity Act
The Digital Asset Market Clarity Act is designed to establish clearer regulatory boundaries for cryptocurrencies in the United States, addressing oversight, market structure, and compliance requirements.
The bill has been seen as a cornerstone of the administration’s broader approach to integrating digital assets into the U.S. financial system while maintaining regulatory safeguards.
Potential Impact of Withdrawn Support
If the White House formally pulls its support, the bill could face significant challenges in Congress, potentially delaying comprehensive crypto regulation.
The dispute underscores growing tensions between policymakers and major crypto firms as the industry seeks regulatory clarity while navigating competing interests within Washington.