Coinbase CEO Brian Armstrong has refuted reports of a clash with the White House over the CLARITY Act, a crypto market structure bill, stating that negotiations are still in progress. Armstrong addressed rumors that the White House was "furious" with Coinbase and considering withdrawing support for the bill.

Armstrong clarified the situation, stating that the White House has been constructive throughout the process. He noted that the White House requested Coinbase to seek a deal with banks, which the company is currently pursuing.

Recent reports indicated a potential fallout between Coinbase and the Trump administration, with the White House allegedly threatening to withdraw its support for the CLARITY Act unless Coinbase resumed negotiations. This stemmed from Coinbase's earlier decision to withdraw its support for the CLARITY Act due to concerns that the legislation would negatively impact the decentralized finance (DeFi) sector, prohibit tokenized stock trading, and ban the sharing of yield from stablecoins with customers. Armstrong stated that Coinbase would prefer no bill at all to a detrimental one and expressed hope for an improved draft.

The US Senate Banking Committee has postponed the markup of the CLARITY Act, originally scheduled for the previous Thursday, to allow for further negotiations between lawmakers and the crypto industry. Armstrong anticipates a revised bill markup within a few weeks and has described the provisions in the current version as potentially "catastrophic" for consumers. These concerns are shared by other crypto industry executives.

The CLARITY Act has exposed divisions within the crypto industry, particularly regarding stablecoin yield. Some industry executives believe the bill favors banks. According to a source close to the administration, the White House is willing to abandon the legislation if Coinbase does not re-enter negotiations and agree to a yield framework that satisfies banking interests and brings all parties back to consensus.

The source also told Eleanor Terrett, a journalist covering the matter, that Coinbase's "unilateral" move blindsided the White House and other stakeholders. The White House has reportedly criticized Coinbase's actions as an attempt to "dictate the fate of industry-wide legislation," emphasizing that the bill was negotiated by a coalition of lawmakers, regulators, and market participants. The source stated, "This is President Trump's bill at the end of the day, not Brian Armstrong's".

Brian Armstrong has defended Coinbase's decision, stating that the firm identified provisions that would harm consumers. He also warned that the language used in the CLARITY Act would ban passive yield on stablecoins, among others, arguing that it gives banks an edge over crypto companies and undermines the American people.