- The White House may withdraw support for a crypto market-structure bill after Coinbase pulled its backing.
- A source told reporters the administration called Coinbase’s move a “unilateral” “rug pull” and felt blindsided (reported).
- The White House could abandon the bill unless Coinbase returns to talks and agrees to compromise on stablecoin yield provisions.
- Coinbase CEO Brian Armstrong said the Senate draft would harm DeFi, risk a de facto ban on tokenized equities, expand government access to records, and shift power from the CFTC to the SEC.
- The crypto community is split: some back Coinbase, while others say one exchange should not veto industry-wide legislation (see comments by Nic Carter and one user).
A White House source said the administration is considering withdrawing its support for a market-structure bill after Coinbase publicly withdrew backing this week, a move officials described as a surprise and a potential deal breaker (reported). The source said the White House wants Coinbase back in negotiations and seeks a compromise on stablecoin yield language that would satisfy banking interests.
Coinbase CEO Brian Armstrong said the Senate Banking Committee draft in its current form would do more harm than good and that the exchange could not support it. He wrote, “We’d rather have no bill than a bad bill. Hopefully we can all get to a better draft.” Armstrong raised concerns that the draft could functionally ban tokenized equities, impose broad limits on DeFi, expand government access to financial records, and strengthen the SEC at the expense of the CFTC.
Stablecoin rules are central to the dispute. Armstrong warned the proposal could risk “killing rewards” on stablecoins, reflecting industry fears the bill protects banks by blocking roughly 5% yields that stablecoins can offer. Banking groups argue high stablecoin yields might trigger deposit outflows from traditional savings accounts.
Industry reaction has been mixed. Supporters of Coinbase accused lawmakers and banks of protecting incumbents, while critics said the exchange should not hold veto power over legislation that affects the entire sector (comments from Nic Carter and one user reflect the split).
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