Crypto Bill in Danger: White House Reportedly ‘Furious’ With Coinbase

Citron Research also went after Coinbase earlier this week.

Popular journalist Eleanor Terrett reported earlier today that the Trump administration is considering completely withdrawing its support for the Cryptocurrency Market Structure Act if Coinbase does not return for negotiations.

The exchange and its CEO blamed banks for intervening and pushing for changes that prevent or restrict users from earning returns on stablecoins. However, other industry experts disagreed.

White House threatens

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

She explained that the government would be “furious” about the stock exchange’s “unilateral” decision on Wednesday, as they were reportedly not informed in advance. Furthermore, the White House reportedly called the move a “back pull” against the White House and the rest of the crypto industry.

🚨SCOOP: The White House is considering completely withdrawing its support for the Crypto Market Structure Act @muntbasis won’t come back to the table with a yield agreement that will satisfy the banks and get everyone to make a deal, a source close to the Trump administration tells me.

—Eleanor Terrett (@EleanorTerrett) January 17, 2026

The source further claimed that this is “ultimately President Trump’s bill, not Brian Armstrong’s.”

Recall that Coinbase withdrew its support earlier this week after blaming banks for making too many changes that prevent users from earning returns on stablecoins. CEO Armstrong outlined numerous problems with the current design, including:

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– A de facto ban on tokenized shares

– DeFi bans, which give the government unrestricted access to your financial data and revoke your right to privacy

– Erosion of the CFTC’s authority, stifling innovation and subordinating it to the SEC

– Draft amendments that would destroy rewards on stablecoins, allowing banks to ban their competition

Undermining the bill?

Coinbase’s decision caused a lot of controversy within and outside the cryptocurrency industry. While some experts, like Ripple’s Brad Garlinghouse, largely stayed on the sidelines, others, like Citron Research, directly blamed Armstrong for undermining the bill.

They argued that Coinbase’s official reasoning shows fear of competition from tokenized securities firms as it seeks to benefit from regulatory clarity without opening the door to rivals.

The Senate Banking Committee postponed the bill’s planned Jan. 15 increase and no new date has yet been set.