Potential Policy Shift Amidst Industry Disagreements
The US administration is reportedly considering a complete withdrawal of its support for the bill designed to regulate the cryptocurrency market. This significant policy shift is reportedly influenced by ongoing disagreements within the industry, particularly concerning negotiations between Coinbase and banking institutions.
A source close to the White House indicated that the administration's potential decision stems from Coinbase's failure to re-engage in negotiations to establish an agreement on yields that would satisfy banks and reconcile all parties involved. This lack of progress has apparently led to frustration within the White House.
White House Expresses Strong Criticism of Coinbase's Actions
The White House has reportedly voiced strong criticism regarding Coinbase's actions on Wednesday, which the administration claims were taken unilaterally and without prior notification. This move was characterized by the White House as a "rug pull against the White House and the rest of the industry." The administration's stance is that no single company should have the authority to represent the entire cryptocurrency sector.
The same source emphasized that the ultimate ownership and direction of this regulatory process lie with the administration, not with individual companies. The statement highlighted, "This is ultimately Donald Trump’s plan; not Brian Armstrong’s."
Conflicting Interests: Banks vs. Cryptocurrency Industry
US banks have expressed opposition to the bill, citing concerns that stablecoin yields could lead to a significant outflow of deposits from traditional banks into stablecoins. Conversely, Coinbase has rejected the current version of the bill, which is undergoing amendments to address the demands of the banking sector.