Coinbase CEO Brian Armstrong has pushed back against reports suggesting a standoff between Coinbase and the White House over the CLARITY Act, the proposed US crypto market structure bill.
In a public statement, Armstrong said the administration has been “super constructive”, adding that the White House simply asked Coinbase to help broker a compromise with traditional banks — a process that is now underway.
“They did ask us to see if we can go figure out a deal with the banks, which we’re currently working on,” Armstrong said.
The comments follow a report claiming the White House was “furious” with Coinbase and might withdraw support for the bill. Armstrong denied those claims, clarifying that discussions are ongoing and productive.
Why Coinbase Withdrew Support
Coinbase pulled its backing for the CLARITY Act earlier this week, citing provisions that could:
- Cripple DeFi by imposing bank-style restrictions
- Ban tokenized stock trading on crypto platforms
- Prohibit sharing stablecoin yield with users
Armstrong summed up the stance bluntly:
“We’d rather have no bill than a bad bill.”
The US Senate Banking Committee subsequently postponed the bill’s markup, giving lawmakers and the industry more time to negotiate changes.
Armstrong described the latest draft as “catastrophic for consumers”, warning that it would protect legacy banking interests at the expense of innovation.
Stablecoin Yield: The Core Battleground
The most controversial clause in the bill bans platforms from sharing stablecoin yield with customers — a move critics say would:
- Push users back into low-interest bank accounts
- Kill competition in onchain finance
- Cement banks as the sole beneficiaries of dollar yield
Supporters of the bill argue that some regulation is better than none. Opponents counter that locking in a flawed framework could set crypto back by years.
Armstrong expects a new draft and markup within weeks, signaling that the battle is far from over.
What This Means for Crypto Users
The outcome of the CLARITY Act will shape:
- Whether DeFi can thrive in the US
- If tokenized stocks become mainstream
- Whether users can earn yield on stablecoins
- How innovation competes with traditional banking power
This is not just a political fight — it’s about who controls the future of money.
Stay Flexible in an Uncertain Regulatory Era
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