CEO Denies White House Withdrew Support for CLARITY Act Amid Industry Debate

Source: CryptoNewsNet Original Title: Coinbase CEO Brian Armstrong said the White House has not withdrawn support for the CLARITY Act Original Link:

Background: CLARITY Act Controversy

Coinbase CEO Brian Armstrong denied claims suggesting that the White House has reversed its position on the CLARITY Act, a U.S. Senate bill focused on crypto market structure, or is considering withdrawing its support. He emphasized that discussions on the legislation are still ongoing.

Armstrong also dismissed rumors that the Trump administration is unhappy with the exchange. In a statement, he elaborated: “The White House has been very helpful. They asked us to see if we can work out an agreement with the banks, and we are currently doing that.”

How the Disagreement Became Public

The disagreement between the exchange and the Trump administration became public when a journalist reported on Friday, January 16, that tensions existed between the two parties. Following the report, the White House threatened to halt its backing for the market structure bill if talks remained frozen.

This disclosure came after the exchange publicly announced it had withdrawn support for the CLARITY Act, expressing concerns that the legislation could negatively impact the decentralized finance (DeFi) sector, impose restrictions on tokenized stock trading, and hinder clients from maximizing returns from stablecoins.

In response to this decision, Armstrong shared a statement: “We’d prefer no bill over a bad bill. We hope to create a better version together.” He outlined key industry risks connected to the draft of the bill.

Reports indicate that the US Senate Banking Committee postponed the planned markup of the market structure bill due to uncertainties raised in the crypto industry. This markup was originally scheduled for Thursday, January 15. Sources noted that the committee wants lawmakers and the industry to secure an agreement on favorable terms.

Coinbase expressed its belief that a new bill markup will be settled sooner than expected, with Armstrong citing that the rules in the halted version were problematic for clients.

Mixed Reactions in the Crypto Community

The CLARITY Act brought about mixed reactions in the crypto ecosystem. Some industry executives anticipated the market structure bill would be a game-changer for the industry despite its drawbacks, while others perceived it as a major obstacle.

The main point of contention is whether to permit stablecoin returns to be shared with clients—a provision the current version of the bill opposes. Critics raised concerns that the CLARITY Act prioritizes the interests of banks over those of the crypto industry, acting as a barrier to progress in financial technology.