White House weighs dropping crypto market bill after Coinbase withdrawal

The White House is considering withdrawing its support for a crypto market structure bill after crypto exchange Coinbase pulled its backing, Fox Business reporter Eleanor Terrett said, citing a source close to the Trump administration. Terrett reported on X that the White House is “furious” about Coinbase’s decision, calling the exchange’s action “unilateral” and saying it blindsided administration officials.

The source told Terrett the move was described as a “rug pull” and said the administration may fully abandon the Digital Asset Market Clarity Act unless Coinbase returns to negotiations and agrees to a compromise on stablecoin yield provisions that would satisfy banking interests.

“This is President Trump’s bill at the end of the day, not Brian Armstrong’s,” the source said, according to Terrett. Coinbase CEO Brian Armstrong said the exchange could not support the Senate Banking Committee draft in its current form and that “we’d rather have no bill than a bad bill,” according to the report.

Armstrong cited concerns including what he described as a de facto ban on tokenized equities, broad restrictions on decentralized finance, expanded government access to financial records that could undermine user privacy, and a shift in power from the Commodity Futures Trading Commission to the Securities and Exchange Commission.

Key Topics

Crypto, Coinbase, White House, Brian Armstrong, Stablecoins, Sec