The White House is considering withdrawing its support for the US crypto market structure bill entirely after Coinbase pulled its backing and declined to return to negotiations, according to multiple reports.
Reportedly, the administration is pushing for a last-minute agreement on stablecoin yield rules that would satisfy banks and bring industry players back into alignment. If Coinbase refuses to re-engage, the White House may walk away from the bill.
The confrontation marks the latest twist in the CLARITY Act saga, which has unfolded rapidly over the past week.
Officials are said to be furious over what they describe as Coinbase’s “unilateral” move earlier this week. The company allegedly did not notify the administration in advance.
The House-passed CLARITY Act was designed to resolve a core issue in US crypto regulation. It decides whether most digital assets should be overseen by the Commodity Futures Trading Commission or the Securities and Exchange Commission.
However, the Senate Banking Committee introduced a full rewrite of the bill, expanding SEC authority, tightening disclosure rules for tokens, restricting stablecoin rewards, and pulling parts of DeFi closer to bank-style compliance and surveillance regimes.
Coinbase responded by withdrawing support, arguing the Senate draft undermined tokenized equities, weakened the CFTC’s role, restricted DeFi, and allowed banks to curb competition in stablecoins.
That move immediately destabilized the bill’s path forward and contributed to the Senate delaying its planned markup.