White House Reportedly ‘Furious’ With Coinbase

Citron Research also followed Coinbase earlier this week.

The famous journalist Eleanor Terrett reported earlier today that the Trump administration is considering withdrawing its support for the cryptocurrency market structure bill altogether if Coinbase does not come back with negotiations.

The exchange and its CEO have accused banks of intervening and forcing changes that prevent or limit users from earning yields on stablecoins. However, some industry experts disagreed.

The White House Threatens

Citing a source close to the Trump administration, Terrett said the White House expects Coinbase to come back with a fair deal that “satisfies the banks and gets everyone to a deal.”

He explained that the management was “supposedly angry” about the “unilateral” exchange decision on Wednesday, as it was reported that they did not inform in advance. In addition, the White House reportedly called the move a “rug pull” against it and the entire crypto industry.

🚨SCOOP: The White House is considering pulling its support for the crypto market structure bill entirely if @coinbase it’s not coming back to the table with a yield deal that satisfies the banks and gets everyone to make a deal, a source close to the Trump administration tells me.…

— Eleanor Terrett (@EleanorTerrett) January 17, 2026

The source also asserted that this is “President Trump’s bill at the end of the day, not Brian Armstrong’s.”

Recall that Coinbase pulled its support earlier this week after accusing banks of implementing a number of changes that often limit users from earning yields on stablecoins. CEO Armstrong pointed out a number of problems with the current framework, including:

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– De facto ban on token shares

– DeFi restrictions, which gives the government unlimited access to your financial records and removes your right to privacy

– Erosion of the CFTC’s authority, restricting innovation, and subjecting it to the SEC

– Draft amendments that would kill rewards in stablecoins, allowing banks to restrict their competition

Undermining the Bill?

Coinbase’s decision caused a lot of controversy both outside and inside the cryptocurrency industry. While some experts, such as Ripple’s Brad Garlinghouse, remained largely on the sidelines, others, such as Citron Research, directly accused Armstrong of undermining the bill.

They argue that Coinbase’s legal reasoning reflects a fear of competition from tokenized securities firms, as it seeks to benefit from regulatory clarity without opening the door to competitors.

The Senate Banking Committee adjourned the bill to January 15, and no new date has been set.