The White House has dismissed ongoing speculation that Coinbase has opposed the latest stablecoin yield deal and could block the crypto bill, the CLARITY Act, from moving forward again.
In an X (formerly Twitter) post, Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, discredited the claims as ‘uninformed FUD.’
He seemed confident that the stablecoin yield deal made last week between the Senate and White House would reignite momentum for the CLARITY Act.
Rumors on the Coinbase holdout
The speculation that Coinbase CEO Brian Armstrong opposed the stablecoin yield proposal was sparked by a Punchbowl News (PBN) report.
According to Brendan Pedersen, a reporter at PBN, representatives at the exchange told the Senate on Monday that Coinbase could not support the latest stablecoin yield deal. However, Pedersen clarified that the holdout was not as strong as Armstrong’s public opposition to the bill in January.
Although some stablecoin yield supporters stood by the alleged Armstrong holdout, others pleaded with him to allow the bill to pass and refine it later.
For his part, Tommy Shaughnessy, founder of crypto VC firm Delphi Ventures, implored Armstrong to reconsider his strong stance against the yield compromise and the crypto bill.
The recent deal narrowed stablecoin yield to account activity rather than the current passive interest earned on balances via intermediaries.
Although this was a win for the banks, as of writing, there was no public statement from the industry on whether they were okay with the yield compromise or not.
Likewise, as of writing, Brian Armstrong had not made a public statement on the alleged opposition to the stablecoin yield compromise.
However, Senator Cynthia Lummis stressed that the bill can’t be postponed, underscoring the current pro-crypto regime as the best to advance clear rules for the sector.
Meanwhile, the details on the limited stablecoin yield in the latest CLARITY Act draft made traders turn bearish on Circle stock, CRCL. The stock fell 20% on Tuesday, from $127 to $98, before easing back to over $100 on Wednesday.
Final Summary
- Trump’s crypto advisor dismissed rumors that Coinbase is opposing the latest stablecoin yield deal, calling the speculation “uninformed FUD.”
- The proposed stablecoin yield restriction sent Circle stock tumbling 20% this week.
