Coinbase CEO Denies Rift With White House Over Crypto Market Bill – Details

Coinbase CEO Brian Armstrong denied the disagreement between the exchange and the White House regarding the content of the building block of the crypto market, that is, the Digital Asset Market Transparency Act. This development follows a series of contentious moments regarding the much-anticipated crypto market structure bill, starting with Armstrong raising concerns about its provisions, which crypto exchanges may choose to oppose rather than support.

Crypto Market Bill Still On, Bank Talks Continue – Coinbase CEO

In a dramatic move on January 15, Armstrong announced the withdrawal of public support for the Clarity Act. A key crypto figure said that the current content of the proposed law introduces a regulatory structure that will have an overall negative effect on the crypto industry. In particular, Armstrong raised the alarm against stablecoin yield sharing, among other issues, before emphasizing the preference for “no bill is better than a bad bill.”

After the event, journalist Eleanor Terrett reported that the White House was upset by the public criticism of Armstrong and Coinbase, which they described as “pulling the rug”. In particular, he said that the administration led by Donald Trump has threatened to withdraw support for the Clarity Act if crypto exchanges fail to return to the negotiating table with satisfactory solutions to the stablecoin yield problem.

However, Armstrong has come out to counter this narrative of a possible conflict between Coinbase and the US government. Instead, Armstrong said the crypto exchange is only targeting discussions with banks about how stablecoin yield sharing can fit into the current financial system.

Notably, the US banking industry has pushed to allow stablecoin operators to share yields with users, which could result in deposit flight and even interest rates as low as 5%. Armstrong says Coinbase is now exploring a deal that could benefit all parties involved following what he described as a “very constructive meeting” with the White House, thus contradicting reports of growing tensions.

Terrett Fires Back At Coinbase Boss

In another X post, Terrett hit back at the Coinbase CEO, saying his original report remains accurate. The famous journalist explains that Armstrong’s refusal supports his previous claim that the White House now depends on their support for the Clarity Act so that Coinbase can secure an agreement with banks on the use of stablecoin yield sharing.

In context, the Clarity Act is designed to clearly define how digital assets are regulated in the United States and which agencies oversee different parts of the crypto market. It is an important piece of legislation, the approval of which is expected to improve investor protection and promote innovation.

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