White House is ‘super constructive’ – Coinbase CEO denies CLARITY Act clash
The post White House is ‘super constructive’ – Coinbase CEO denies CLARITY Act clash appeared on BitcoinEthereumNews.com.
U.S. crypto regulation has long been a complex issue, and the latest developments surrounding the Digital Asset Market Clarity Act (CLARITY Act) indicate that the fight is far from over. After days of speculation that Coinbase had angered the White House by pulling support for the bill, CEO Brian Armstrong tried to calm the situation. He dismissed claims that the administration plans to back away from the legislation, saying the White House has been “super constructive,” not hostile. Source: Brian Armstrong/X But behind the positive tone, a major problem remains. What’s the blocker? While companies like Ripple and Kraken continue to support the CLARITY Act, Coinbase has taken a hard stance, arguing that passing a flawed law would be worse than passing none at all. That position has slowed the bill’s progress. At the heart of the deadlock is a fundamental dispute over stablecoin yield. Under the latest version of the CLARITY Act, crypto platforms would no longer be allowed to share interest or rewards with users who hold dollar-backed stablecoins. Banking groups, especially those representing small community banks, say this rule is necessary to stop what they call “deposit flight.” Their concern is simple If users can earn around 5% rewards on stablecoins through platforms like Coinbase, they may pull money out of traditional savings accounts. Banks argue that losing these deposits would reduce the money they rely on to offer home loans and small business loans in local communities. However, Coinbase disagrees with this notion. The company believes this is less about protecting the financial system and more about protecting bank profits. From its point of view, the rule limits competition by favoring traditional banks over new crypto-based alternatives. By stepping back from the bill, Brian Armstrong is betting that delaying the law is better than passing one…
Filed under: News - @ January 19, 2026 11:27 am