The White House is considering completely withdrawing support for the U.S. Cryptocurrency Market Structure Act after Coinbase withdrew its support and refused to return to negotiations, according to multiple reports.
The administration is reportedly seeking a last-minute agreement on stablecoin yield rules that would satisfy banks and align industry players. If Coinbase refuses to re-engage, the White House could withdraw from the bill.
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Conflicts over CLARITY law intensify
The standoff marks the latest development in the CLARITY Act saga that has unfolded rapidly over the past week.
Officials are said to be furious at what they called Coinbase’s “unilateral” move earlier this week. The company is said to have failed to notify the government in advance.
The CLARITY Act, passed by the House of Representatives, was designed to address core issues in US cryptocurrency regulation. Determine whether most digital assets should be overseen by the Commodity Futures Trading Commission or the Securities and Exchange Commission.
Initially, this framework had wide support in the industry.
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However, the Senate Banking Committee introduced a complete rewrite of the bill, expanding the SEC’s powers, tightening token disclosure rules, capping stablecoin rewards, and bringing parts of DeFi closer to bank-style compliance and oversight regimes.
In response, Coinbase withdrew its support, arguing that the Senate draft would hurt tokenized stocks, weaken the role of the CFTC, limit DeFi, and allow banks to stifle stablecoin competition.
The move immediately destabilized the bill’s progress and helped delay the Senate’s planned increases.
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Why the White House should intervene?
The White House’s involvement reflects how politically important the bill has become for the Trump administration.
The White House is currently seeking a compromise on stablecoin yields. This is a key flashpoint between cryptocurrency companies and banks to save the bill and present a united front.
Otherwise, the administration could withdraw support rather than allow the bill to stall publicly due to industry infighting.
Now timing is very important.
Passing the CLARITY Act before the November midterm elections would allow the Trump administration to claim a major legislative victory in financial innovation, regulatory transparency, and U.S. competitiveness in digital assets.
Delaying beyond the midterm elections risks completely changing the political landscape. The commission’s leadership may change, regulatory priorities may change, and a new Congress may be less aligned with the administration’s approach to crypto markets.
For the White House, passing the bill quickly reduces political risk and avoids restarting negotiations with a potentially unfavorable balance of power.
