Coinbase CEO Pushes Back Against Reports of White House Withdrawing Support for CLARITY Act
Coinbase CEO Brian Armstrong has refuted reports suggesting the White House is withdrawing its support for the CLARITY Act, stating that discussions with the administration remain constructive and ongoing.
In a recent post on X, Armstrong addressed a report claiming the White House had ended its support for the bill, calling it inaccurate. He revealed that the government had requested Coinbase to explore a potential compromise with banks, particularly regional lenders, and that these discussions are currently underway.
The CLARITY Act aims to establish regulatory guidelines for digital assets in the United States, covering exchanges, DeFi platforms, stablecoins, and tokenized assets. Coinbase had previously withdrawn its support for the bill due to concerns about its potential impact on DeFi activity, tokenized equity products, and stablecoin issuers.
The Dispute Over Stablecoin and DeFi Regulations
The proposed language in the latest Senate bill could limit DeFi activity, restrict tokenized equity products, and prevent stablecoin issuers from offering yield-like rewards to users. Armstrong also expressed concerns about expanded government access to financial data and a shift in regulatory power to the Securities and Exchange Commission at the expense of the Commodity Futures Trading Commission.
Stablecoin returns have emerged as a key point of contention, with banks arguing that returns from cryptocurrencies could drain deposits from the banking system. Industry opinion remains divided, with some executives believing that passing a compromised version of the bill would provide much-needed regulatory clarity, while others argue that restrictive language could harm the sector in the long term.
Negotiations and Next Steps
Negotiations between Coinbase, banks, and policymakers are ongoing, with the goal of revising the language in the bill to address the concerns of all parties involved. The revised language is expected to be discussed in the coming weeks as lawmakers seek an agreement that can advance in the Senate.
Despite reports of tensions, Armstrong described recent discussions with the White House as “super constructive” and emphasized the administration’s commitment to finding a balance between crypto innovation and the concerns of traditional financial institutions.
For more information on this developing story, please visit https://crypto.news/coinbase-ceo-report-white-house-clarity-act-2025/
