Brian Armstrong, CEO of crypto exchange Coinbase, denied reports that the White House is considering withdrawing support for the CLARITY Act, a law to structure the crypto market, and also denied rumors that the administration is “furious” with Coinbase.
“The White House has been super constructive here. They’ve asked us to see if we can go and work out a deal with the banks, which we’re working on right now,” Armstrong he said.
On Friday, freelance journalist Eleanor Terrett reported a standoff between Coinbase and the administration of US President Donald Trump, with the White House threatening to withdraw support for market structure legislation if Coinbase does not continue negotiations.
On Wednesday, Coinbase withdrew its support for the CLARITY Act over concerns that the bill would destroy the decentralized finance (DeFi) sector, ban tokenized equity trading and prohibit sharing of stablecoin returns with customers.
“We’d rather have no bill than a bad bill. Hopefully we can all come up with a better draft,” Armstrong he said on Wednesday as he shared a list of industry concerns about the latest bill.
The US Senate Banking Committee has delayed a planned markup of the CLARITY Act, originally scheduled for Thursday, until lawmakers and the crypto industry can agree on more acceptable terms.
Armstrong said he expects another bill increase within “a few” weeks and characterized the provisions in the stalled version of the bill as “disastrous” for consumers, echoing widespread concerns among crypto industry executives.
Related: The US crypto market structure is in limbo as the industry pulls back support
The CLARITY Act leaves the crypto industry divided as the battle over stablecoin yields intensifies
The CLARITY Act has created divisions within the crypto industry, with some industry executives arguing that the bill is a net positive for the sector, despite its flaws, and others arguing that it is a major setback for the industry
At the heart of the debate is the issue of sharing stablecoin returns with clients, which the latest version of the law prohibits.
Critics of the bill say that it protects banking interests at the expense of the crypto industry and kills innovation in financial technology.
Magazine: Bitcoin ‘Bullish’ in Q1 Says Willy Woo, XRP Lacks CLARITY: Trade Secrets
