- Senior officials in the Donald Trump administration have criticized Coinbase and its CEO for withdrawing support from the stalled crypto market structure bill.
- Despite this, World Liberty Financial—co-founded by President Trump—publicly supports Coinbase’s stance, as both companies’ products rely on stablecoin rewards.
- The bill’s delay, partly caused by Coinbase’s withdrawal, has cast doubt on its passage before Congress enters its midterm season.
- Negotiations continue in Washington, with the White House deeming the bill’s passage a top priority despite industry divisions.
As the crypto industry’s most sought-after legislation stalls in Congress, Trump administration officials have aggressively targeted Coinbase after the exchange walked away from the market structure bill last month. However, at a recent Mar-a-Lago conference, the Trump family’s crypto firm, World Liberty Financial, offered its full support to Coinbase’s political strategy.
U.S. Treasury Secretary Scott Bessent has labeled executives opposing the bill’s terms as “nihilists” and even said they should leave America. Conversely, World Liberty CEO Zach Witkoff told Coinbase CEO Brian Armstrong, “We applaud you” and “We’re super aligned.”
The conflict centers on evolving language concerning stablecoin rewards, which Coinbase offers on its USDC stablecoin. Similarly, World Liberty’s ambitions for its USD1 stablecoin and related apps depend on this functionality. Consequently, World Liberty co-founder Zak Folkman told Decrypt, “We are very much aligned with their way of thinking about this.”
Coinbase’s sudden withdrawal caught Congress and the White House off-guard, prompting Republican lawmakers to pull a key Senate vote. The Trump administration has since held meetings with industry players, including Coinbase, as passage of the bill is a top legislative priority. Should the bill fail, stablecoin rewards would likely remain legal under the existing GENIUS Act.
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