The United States White House has indicated it may withdraw support for the ongoing development of a significant crypto market bill amid a contentious dispute with industry giant Coinbase. This conflict arose when Coinbase announced its decision to not endorse the current direction of the legislation.
The White House”s frustration stems from the withdrawal of Coinbase”s backing for the CLARITY Act. According to Eleanor Terett, the government is contemplating retracting its political support due to Coinbase”s unexpected pivot. The administration has expressed that this move feels unilateral, likening it to a “rug pull” that jeopardizes the legislative process and the broader cryptocurrency landscape.
Late Wednesday, Coinbase CEO Brian Armstrong publicly voiced his concerns regarding various issues within the bill”s draft, declaring that the exchange would not lend its support just before a crucial markup session scheduled for Thursday. This abrupt change has led the White House to characterize the action as a detrimental shift just prior to the important legislative discussions.
In recent times, Coinbase has faced considerable criticism since the act”s introduction. Industry experts suggest that Coinbase”s primary concern lies with integration issues rather than the legislation itself. They argue that the proposed bill could potentially enhance competition from emerging companies, which may threaten Coinbase”s market position over time.
The White House has clarified that the legislation is not aimed at any single exchange but is designed to benefit the entire economy. “This is President Trump”s bill at the end of the day, not Brian Armstrong”s,” officials have emphasized.
As for the status of the legislation, some senators have reaffirmed their commitment to advancing the CLARITY Act, which aims to establish regulatory frameworks for digital commodities. This bill could facilitate new avenues for capital raising within the crypto sector. Senator Mark Warner, a Democrat from Virginia, has expressed optimism regarding the bill”s future, stating, “I think there is a way forward.” However, the timeline for a new markup session has yet to be disclosed, with speculations suggesting it could extend into February.
Meanwhile, Senator Lummis has also shared insights on the ongoing legislative proceedings. In contrast, some industry leaders remain hopeful about the bill”s prospects. Mike Novogratz, CEO of Galaxy Digital, predicts that the CLARITY Act could be ratified within the next couple of weeks based on positive feedback from senators he has engaged with.
