White House Disappointed as Coinbase Withdraws Support for Crypto Bill

• Coinbase withdrew backing of the CLARITY Act over stablecoin yield limits, forcing the Senate Banking Committee to delay a vote.
• The White House said it was blindsided, calling Coinbase’s move a “rug pull” and weighing whether to withdraw support entirely.
• Brian Armstrong argued the bill protects banks by capping stablecoin yields, saying it could harm consumers and competition.

Coinbase withdrew support for a major crypto market structure bill this week. This came ahead of a planned Senate Banking Committee vote last Thursday. Senior White House officials, Coinbase executives and lawmakers became involved after the exchange objected to yield provisions, delaying the vote and threatening the bill’s future.

According to a source close to the Trump administration, the White House is considering withdrawing support for the Clarity Act. The source said officials felt blindsided by Coinbase’s decision, which occurred without prior notice.

Notably, the administration described the move as a “rug pull” against lawmakers and industry participants. The nearly 300-page bill had been scheduled for a committee vote after months of negotiations.

However, Coinbase’s public withdrawal forced senators to postpone the markup. The White House emphasized that the legislation reflects a broad coalition effort, not a single company’s position. “This is President Trump’s bill,” the source said, referencing Brian Armstrong.

Coinbase CEO Brian Armstrong defended the decision during a CNBC interview on Thursday. He said certain provisions could harm consumers and limit competition. Armstrong argued banks should not suppress stablecoin yields to protect traditional savings products. He later reiterated his position in a post on X, opposing the bill’s current language.

According to Armstrong, average savings accounts pay about 14 basis points, while stablecoin rewards can reach 3.8%. He said banks could innovate without facing material risk. Coinbase’s stance marked a shift, given its earlier involvement in shaping the bill.

Congressional staff reportedly worked with industry representatives for months to draft the Clarity Act. The bill aims to clarify rules for trading, custody, issuance, and decentralized finance. Coinbase, valued near $70 billion, also supported crypto-friendly candidates during the 2024 elections.

Speaking to Crypto In America’s Eleanor Terrett, a source said the White House may walk away rather than accept pressure from one company. Meanwhile, Coinbase’s head of U.S. policy, Kara Calvert, called the pause a “shock to the system.” She said discussions continue and described ongoing talks as respectful and active.