White House may withdraw backing for CLARITY Act after Coinbase exit

Beincrypto reports the White House is considering withdrawing support for the CLARITY Act after Coinbase pulled its backing and declined to return to negotiations, according to multiple reports.

The CLARITY Act, originally passed by the House to settle whether most digital assets fall under the CFTC or the SEC, initially had broad industry support. The Senate Banking Committee then proposed a full rewrite that reportedly expands SEC authority, tightens token disclosure rules, restricts stablecoin rewards and pulls parts of DeFi toward bank‑style compliance. After reviewing the Senate draft, Coinbase said it could not support the bill as written, citing concerns including a de facto ban on tokenized equities, weakened CFTC roles and limits on DeFi; officials are said to be furious about what they describe as Coinbase’s "unilateral" move, and the withdrawal helped prompt a delay to the Senate markup.

The White House is reportedly pressing for a last‑minute compromise on stablecoin yield rules to satisfy banks and reunify industry players, but officials may walk away if Coinbase refuses to re‑engage. Timing is critical: passing the bill before the November midterms would let the administration claim a legislative win, while delays risk changing committee leadership and regulatory priorities if control shifts after the elections.

Key Topics

Crypto, Clarity Act, Coinbase, White House, Senate Banking Committee, Cftc