The Clarity Act is meant to give the US crypto market something it has lacked for years: a clear legal framework defining how digital assets are regulated, who oversees them, and how crypto companies can operate without constant regulatory uncertainty. That goal is now reportedly under pressure.
Rumors are that a growing rift between the White House and Coinbase has raised the possibility that the administration could pull its support for the bill, putting one of the most closely watched pieces of crypto legislation at risk.
White House Frustration With Coinbase
According to reporting shared on X by Eleanor Terrett, sources close to the White House say the administration is considering pulling its support for the Clarity Act if Coinbase does not return to negotiations over stablecoin yield provisions. The issue centers on finding an arrangement that satisfies both crypto firms and traditional banks, particularly community banks that lawmakers see as a core stakeholder in the bill.
The source described Coinbase’s recent move as a unilateral action that caught the White House off guard, characterizing it as a rug pull against both the administration and the entire crypto industry. Officials reportedly pushed back against the idea that a single company could speak for the entire sector, stressing that the legislation reflects the policy agenda of US President Donald Trump and not the priorities of Coinbase CEO Brian Armstrong.
The Clarity Act is designed to define regulatory boundaries between US agencies and provide clearer rules for crypto markets, including how stablecoins and yield-bearing products are treated.
Behind the dispute is a broader struggle between the White House and Coinbase over how crypto yield products should coexist with banking regulations. The White House’s position, as described by Terrett, is that reaching consensus with banks is essential for the bill to move forward.
Brian Armstrong Pushes Back On Rug Pull Claims
Coinbase is the largest crypto exchange and crypto custodian in the US, and this has naturally placed the company at the center of negotiations with the Trump administration. The scoop from Eleanor Terrett’s source is that White House officials think Coinbase CEO Brian Armstrong is not cooperating, as the bill is President Trump’s bill at the end of the day, not Armstrong’s.
However, the Coinbase CEO publicly rejected the notion that relations with the White House have soured. Responding directly to the report on X, Armstrong said the administration has been super constructive and confirmed that Coinbase is actively working to find common ground with banks on yield-related issues.
He added that the company is in the process of figuring out a deal with community banks, which is the important focus of the bill. Negotiations are currently open, and Armstrong noted that further details would be shared soon.
Nonetheless, the standoff leaves the Clarity Act in a delicate position, as both sides attempt to shape the future of US crypto regulation without fracturing industry-wide support.
Featured image from Coinbase, chart from TradingView
