Coinbase CEO Brian Armstrong pushed back against reports that the White House was withdrawing support for the CLARITY Act, saying discussions with the administration remain constructive.
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Brian Armstrong said reports that the White House has ended support for the CLARITY Act are inaccurate and that negotiations remain active. Coinbase withdrew its support for the bill, citing concerns about stablecoin yields, DeFi restrictions, and regulatory balance. Negotiations with banks and policymakers continue as lawmakers work toward amending the text in early 2026.
In a post shared on X on Sunday, January 18, Armstrong said reports suggesting the White House had withdrawn support were inaccurate.
He explained that the administration has asked Coinbase to see if a compromise can be reached with banks, particularly regional lenders, and said those discussions are currently underway.
Armstrong added that the bill’s impact on small banks is a central issue being discussed.
The comments follow a report by journalist Eleanor Tellet, who cited anonymous sources and claimed that the White House was unhappy with Coinbase’s decision to withdraw its support for the CLARITY Act without notice in early January.
The move, it said, would be seen as a betrayal and risk damaging momentum for the legislation. Mr Tellet stood by her report even after Mr Armstrong’s response.
Disputes centered on stablecoins and DeFi regulations
The CLARITY Act aims to define the regulatory boundaries for digital assets in the United States, covering exchanges, DeFi platforms, stablecoins, and tokenized assets.
Coinbase has publicly withdrawn its support for the CLARITY Act, citing concerns about the latest Senate draft. Armstrong said the proposed language could restrict DeFi activity, limit tokenized equity products, and prevent stablecoin issuers from offering rewards like yield to users.
He also expressed concerns about expanding the government’s access to financial data and shifting regulatory authority to the Securities and Exchange Commission at the expense of the Commodity Futures Trading Commission.
The withdrawal had immediate effects. A scheduled rate hike meeting in the Senate Banking Committee was postponed to allow more time for negotiations, slowing the bill’s progress once it passes the House in 2025.
White House involvement continues
Despite reports of tensions, Armstrong said there was no rift in the relationship. He said recent discussions with the White House were “very constructive” and said the administration is focused on finding a path to balance cryptocurrency innovation with the concerns of traditional financial institutions.
Stablecoin yields have emerged as a key issue, with banks claiming that the proceeds from issuing cryptocurrencies could drain deposits from the banking system.
Industry opinion remains divided. Some executives argue that passing a compromise version of the bill would still provide much-needed regulatory clarity, while others believe locking in restrictive language could cause long-term damage to the industry.
Negotiations are ongoing for now, with revised language expected to be debated in the coming weeks as lawmakers seek an agreement that can move forward in the Senate.
