Coinbase denies rift with White House, seeks stablecoin compromise for CLARITY Act

Beincrypto reports that Coinbase CEO Brian Armstrong denied a reported breakdown with the Trump administration, saying talks over the CLARITY Act remain "super constructive" and that the exchange is developing a compromise to address community bank concerns about high-yield stablecoins.

Crypto journalist Eleanor Terrett had reported the administration was furious and said officials were prepared to withdraw support for the bill unless Coinbase returned to negotiations on stablecoin yields. Community and regional banks fear "deposit flight" if exchanges offer high yields on dollar-pegged stablecoins, moving funds from low-interest accounts into digital assets.

Armstrong said the White House tasked Coinbase with negotiating a deal with the banks and that "specific details were coming soon," writing on X that "we’ve been cooking up some good ideas on how we can help the community banks." Earlier in the week Coinbase had signaled it might withdraw support over provisions that would ban tokenized stocks, restrict decentralized finance protocols, and eliminate stablecoin rewards.

Key Topics

Crypto, Coinbase, Brian Armstrong, Clarity Act, Stablecoins, Community Banks