Coinbase Denies White House Standoff, Targets Stablecoin Compromise for CLARITY Act
Coinbase CEO Brian Armstrong has pushed again towards stories of a deepening rift with the Trump administration, insisting that collaboration stays “tremendous constructive” concerning the CLARITY Act.
This adopted a report from crypto journalist Eleanor Terrett, who stated the administration was livid with the alternate.
Polymarket Puts CLARITY Act Odds of Passage This Year at 41%
According to the report, officials were prepared to withdraw support for the legislation until Coinbase returned to negotiations with a compromise on stablecoin yields.
At the center of the dispute is the traditional banking sector’s fear of “deposit flight.”
Community and regional banks have warned that permitting crypto exchanges to supply high yields on stablecoins may speed up deposit outflows. They argue that prospects would transfer funds from low-interest financial savings accounts into dollar-pegged digital property, elevating dangers to banking stability.
However, Armstrong disputed the characterization that the White House is threatening to kill the invoice. Instead, he framed the scenario as a strategic directive from the administration to resolve the precise issues of regional lenders.
He famous that the White House tasked the alternate with negotiating a take care of the banks, and that the precise particulars had been “coming quickly.”
“Actually, we’ve been cooking up some good concepts on how we will help the group banks particularly on this invoice, since that’s what that is about,” Armstrong wrote on the social media platform X.
This rigidity highlights the fragility of the excellent invoice, which goals to offer long-sought regulatory readability for the digital asset trade.
Earlier within the week, Coinbase signaled it would withdraw its support for the CLARITY Act. The alternate cited provisions that might ban tokenized shares, prohibit decentralized finance protocols, and get rid of stablecoin rewards.
Meanwhile, trade friends are watching the negotiations intently.
Ripple CEO Brad Garlinghouse famous that whereas the legislative course of is contentious, the Senate’s move represents a “massive step forward” for defending customers and establishing a workable framework.
“Ripple (and I) know firsthand that readability beats chaos, and this invoice’s success is crypto’s success. We are on the desk and can proceed to maneuver ahead with truthful debate,” he stated.
Despite this optimism, prediction markets stay skeptical concerning the timeline. On the betting platform Polymarket, merchants are presently pricing in solely a 41% probability that the market construction invoice will cross into regulation this yr.
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