Brian Armstrong, CEO of crypto exchange Coinbase, has denied reports that the White House is considering withdrawing support for the CLARITY Act, a crypto market structure bill, and also denied rumors that the administration is “furious” with Coinbase.
“The White House has been extremely constructive. They have asked us to see if we can come to an agreement with the banks, which we are currently working on,” Armstrong said. said.
Friday, independent journalist Eleanor Terrett reported a clash between Coinbase and the administration of US President Donald Trump, with the White House threatens to withdraw support for the bill on market structure if Coinbase does not resume trading.
Coinbase withdrew support on Wednesday for the CLARITY Act due to concerns that the legislation would hollow out the decentralized finance (DeFi) sector, ban trading in tokenized stocks, and prohibit the sharing of stablecoin returns with customers.
“We’d rather have no bill than a bad bill. Hopefully we can all come up with a better bill,” Armstrong said. said Wednesday, while sharing a list of industry concerns regarding the most recent bill.
The United States Senate Banking Committee postponed the planned marking of the CLARITY Act, originally scheduled for Thursday, until lawmakers and the crypto industry can negotiate more acceptable terms.
Armstrong said he expects a new increase in the bill in “a few” weeks and called the provisions of the blocked version of the bill “catastrophic” for consumers, echoing the widespread concerns among crypto industry executives.
Related: US Crypto Market Structure Bill Is In Limbo As Industry Withdraws Support
The CLARITY Act leaves the crypto industry divided, as the fight for stable coin yield intensifies.
The CLARITY law has created a division within the crypto industry, with some industry executives saying the bill is a net positive for the sector, despite the downsides, and others saying it is a major setback for the industry.
At the heart of the debate is the question of share stablecoin yield with customerswhich the most recent version of the bill prohibits.
Criticisms of the bill say that it protects banking interests at the expense of the crypto industry and kills innovation in fintech.
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