Coinbase CEO denies rift with White House over crypto market bill – Details | Bitcoinist.com

Coinbase CEO Brian Armstrong has denied existing tension between the exchange and the White House over the content of the crypto market structure law, i.e. the Digital Asset Market Clarity Act. This development follows a series of controversial moments surrounding the long-awaited crypto market structure law, starting with Armstrong expressing concerns about its provisions, which the crypto exchange has preferred to protest rather than support.

Crypto market bill still pending, bank negotiations underway – Coinbase CEO

In a surprise move, Armstrong announced a withdrawal of public support for the Clarity Act on January 15. The top crypto figure argued that the current content of the proposed legislation introduced a regulatory structure that would have a net negative effect on the crypto industry. In particular, Armstrong raised the alarm about opposition to stablecoin revenue sharing, among other things, before emphasizing the preference of “no account over a bad account.”

Following this event, journalist Eleanor Terrett spoke reported that the White House became enraged by Armstrong and Coinbase’s public criticism, which they described as “rug pulling.” In particular, she alleged that the Donald Trump-led administration has threatened to withdraw support for the Clarity Act if the cryptocurrency exchange fails to return to the negotiating table with satisfactory solutions to the stablecoin yield dilemma.

However, Armstrong has come out to refute this story of a possible fallout between Coinbase and the US government. Preferably Armstrong declared the crypto exchange has only mandated that it strike a deal with banks on how stablecoin revenue sharing can fit into the current financial system.

The U.S. banking industry in particular has resisted allowing stablecoin operators to share proceeds with users, which they say could potentially trigger a deposit flight even at interest rates as low as 5%. Armstrong said Coinbase is now exploring a potential deal that could benefit all entities involved following what he described as a “super-constructive” meeting with the White House, countering the report of escalating tensions.

Terrett fires back at Coinbase Boss

In another X post, Terrett hit back at Coinbase’s CEO, claiming her initial report remained accurate. The famous journalist explains that Armstrong’s rebuttal supports her previous claim that the White House has now tied their support for the Clarity Act to Coinbase’s ability to strike a deal with the banks on the implementation of stablecoin revenue sharing.

For 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 a crucial piece of legislation, the adoption of which is expected to improve investor protection and promote adoption.

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