- Coinbase continues to take heat over stalled negotiations on the crypto market structure bill.
- The crypto exchange confirmed that the White House ordered them to find a middle ground for banks and other parties in the discussions.
Coinbase, the largest regulated crypto exchange in the US, continues to be at the hot seat of the ongoing deadlock over the crypto market structure bill. The company’s CEO, Brian Armstrong, confirmed that they are finding a middle ground amid warnings coming from the White House.
Armstrong’s statement came as an answer to Crypto in America host Eleanor Terrett’s update, revealing that the White House has warned about completely withdrawing its support for the bipartisan crypto market structure bill if Coinbase refuses to cooperate.
White House Warns of Withdrawal of Support for the Crypto Market Structure Bill
According to Terrett, her unnamed contact highlighted that US President Donald Trump’s administration advised the crypto trading company to come up with a yield agreement that would satisfy the parties at the negotiation table, particularly community banks. The latest developments followed the American Bankers Association’s Community Bankers Council’s lobbying at the Senate, urging lawmakers to retain the stablecoin yield prohibition to prevent the capital flight of an estimated $6.6 trillion in bank deposits.
Coinbase pulled out of the discussions last Wednesday after raising several concerns about the draft legislation’s stablecoin yield limit, decentralized finance (DeFi) restrictions, and increased government surveillance. In addition, it opposed the proposed legislation’s framework, which puts the Commodity Futures Trading Commission (CFTC) subservient to the Securities and Exchange Commission (SEC).
Terret claimed White House was “furious with Coinbase’s unilateral action.” The powers that be in the executive reportedly called the event a “rug pull” not only for the government but also for the crypto sector.
Moreover, Trump’s group pointed out that it doesn’t believe a single company wields the voice of the entire digital asset industry. It reminded, “This is President Trump’s bill at the end of the day, not Brian Armstrong’s.”
Coinbase Clarifies the Issue
Armstrong criticized the framing of Terrett’s scoop, calling it “inaccurate.” He clarified that the White House was only “super constructive” in its response.
The Coinbase boss explained that Trump’s team asked his side to “figure out a deal with the banks,” which they are currently working on.
“Actually, we’ve been cooking up some good ideas on how we can help the community banks, specifically in this bill, since that’s what this is about… the community banks, right? More coming soon,” said Armstrong.
Terrett, however, defended that her reporting was “airtight and accurate.” She emphasized that Armstrong just cited the central point of her story as correct: That the White House’s support now weighs on the outcome of Coinbase’s deal with the banks.
What’s your Reaction?
+1
2
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
About the Author
