The White House is reassessing its support for a major crypto market structure bill after a sharp standoff with Coinbase. The disagreement has injected fresh uncertainty into Washington’s efforts to shape clear rules for digital assets.
Fox Business reporter Eleanor Terrett revealed that a source close to the Trump administration described growing frustration inside the White House. Officials reportedly felt blindsided by Coinbase’s sudden decision to withdraw support for the Digital Asset Market Clarity Act. The source said the administration viewed the move as unilateral and disruptive. The decision allegedly came without prior notice during sensitive policy discussions.
🚨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
White House Weighs Walking Away from the Legislation
The source indicated that the White House is now considering abandoning the bill altogether unless Coinbase reenters negotiations and agrees to revised terms. At the center of the dispute are stablecoin yield provisions, which administration officials believe must reflect concerns raised by banking institutions.
The source stressed that the legislation reflects the policy agenda of President Donald Trump and that private firms cannot dictate federal policy. White House advisers argue that stablecoin rewards near 5% could disrupt the traditional banking system by triggering large deposit outflows from savings accounts.
Coinbase Details Policy Concerns Behind Withdrawal
Coinbase defended its decision by pointing to what it sees as structural flaws in the draft. Chief executive Brian Armstrong said the bill would do more harm than good in its current form and warned it could significantly restrict decentralized finance activity. He also argued that the draft effectively creates a ban on tokenized equities.
Additionally, Armstrong said expanded government access to financial records could undermine user protections, while the proposal would weaken the Commodity Futures Trading Commission. He added that the bill would expand the power of the Securities and Exchange Commission.
Industry Divisions Add Pressure to Negotiations
The dispute has exposed broader fractures within the crypto industry, as some firms favor rapid passage to gain regulatory clarity while others fear restrictive rules could slow innovation. A source cited by Eleanor Terrett said the White House expected stronger industry alignment, but Coinbase’s withdrawal has complicated that strategy.
Private discussions between policymakers and industry leaders continue, yet officials appear increasingly open to shelving the bill without broader consensus. As tensions persist, the future of the crypto market structure bill remains uncertain. The administration’s next move could significantly influence the regulatory direction of digital assets.