White House may withdraw crypto bill support after Coinbase exit, creating legislative uncertainty and tensions across U.S. crypto markets.
The White House is reconsidering support for the Digital Asset Market Clarity Act after Coinbase withdrew its backing. Officials view this move as unilateral and disruptive. Consequently, the administration is concerned that the bill will not pass without wider agreement among the industry. This uncertainty is now impacting investors, fintech companies, and lawmakers who are pursuing digital asset regulation across the country.
White House Criticizes Coinbase’s Unilateral Action
According to Fox Business reporter Eleanor Terrett, the government felt blindsided by Coinbase’s move to withdraw. Moreover, one source close to the Trump administration said it was a “rug pull” against policymakers and the crypto sector.
On the other hand, officials said one company cannot speak for the entire industry. They also said the bill reflects presidential priorities instead of corporate interests.
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The administration is reportedly considering a full withdrawal if Coinbase does not come back to the table. Furthermore, sources emphasized stablecoin yield provisions as the key disagreement.
The inability to resolve this issue could lead to the collapse of the CLARITY Act completely. As a result, there is uncertainty for lawmakers and investors about timing, content and market stability in the United States around crypto regulations.
Coinbase CEO Brian Armstrong said the current bill language is materially worse than existing rules. In addition, Armstrong said the legislation could prohibit stablecoin rewards to consumers and crypto companies.
He also said that traditional banks may get unfair advantages through the bill. Therefore, Coinbase’s withdrawal reflects consumer protection as well as market competition issues within digital finance.
Meanwhile, the crypto community is still split on the future of the CLARITY Act. Ripple and Kraken still endorse the bill, but Coinbase objects to it. Moreover, the Senate Banking Committee cancelled its markup set for January 16, 2026.
Legislative Delays Could Affect Market Adoption
This dispute comes after the passing of the GENIUS Act on July 18, 2025, which set stablecoin regulatory standards. Additionally, there are more than 50 fintech firms keeping tabs on stablecoin yield provisions for any possible compliance adjustments. Furthermore, the decision that the White House makes in the coming weeks will decide whether the CLARITY Act will advance or not, under political pressure.
Investor confidence might be lost if lawmakers can’t reach a consensus soon. In addition, fintech platforms are keeping a close eye on the restrictions of the stablecoin yield for consumers.
This ongoing tension may influence how institutions are shaped and reduce U.S. competitiveness in the global arena. Therefore, a compromise between Coinbase, banks, and policymakers is still a requirement if legislation is to succeed.
Lawmakers and industry participants are preparing new negotiations to find a compromise on differences. Moreover, the ability to compromise is essential to confidence in U.S. crypto regulations. Consequently, the result of the CLARITY Act will affect the policy of digital assets, participation in the market, and future stablecoin innovation.
Source: https://www.livebitcoinnews.com/white-house-may-drop-crypto-bill-after-coinbase-pulls-support/
