Coinbase denies standoff with White House, targets stablecoin compromise for CLARITY Act

Coinbase CEO Brian Armstrong has responded to reports of a growing rift with the Trump administration, insisting that cooperation remains “very constructive” regarding the CLARITY Act.

This came after a report from cryptocurrency journalist Elinor Terret, who said that management is angry with the exchange.

Polymarket puts the probability of the CLARITY Act passing this year at 41%

According to the report, Officials were ready to withdraw support for the legislation Unless Coinbase returns to negotiations with a compromise on stablecoin returns.

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At the heart of the conflict The fear of the traditional banking sector is the “deposit flight”.

Allowing cryptocurrency exchanges to offer high returns on stablecoins could accelerate deposit flows, community and regional banks have warned. They argue that customers will move money from low-interest savings accounts into digital assets tied to the dollar, increasing risks to the banks’ stability.

However, offering Armstrong described the White House as threatening to kill the bill. Instead, the positioning was framed as a strategic directive by management to solve the specific problems of regional loans.

He said the White House had assigned the stock exchange to negotiate an agreement with the banks, and that specific details would “emerge soon.”

“Actually, we’ve been brainstorming some good ideas about how community banks can help specifically with this project, because that’s what it’s all about,” Armstrong wrote on the X social media platform.

This tension highlights the fragility of the comprehensive project, which aims to provide long-term regulatory clarity for the digital asset industry.

Earlier this week, Coinbase hinted at a possibility He withdrew his support for the CLARITY Act. The exchange cited provisions that would ban tokenized stocks, restrict decentralized financial protocols, and eliminate stablecoin rewards.

Meanwhile, their industry counterparts are closely monitoring the negotiations.

Ripple CEO Brad Garlinghouse said that although the legislative process is controversial, The Senate’s move represents a “big step forward.” To protect consumers and establish a practical framework.

“Ripple (and I) know from my experience that clarity trumps chaos, and the success of this law is the success of cryptocurrency. We are at the table and we will continue to advance in a fair debate,” he said.

Despite this optimism, forecast markets remain skeptical about the timeline. On the Polymarket betting platform, Prices Traders are currently only 41% to pass the Market Structure Act into law this year.