Coinbase CEO Brian Armstrong is pushing back against claims that the White House has dropped its support for the CLARITY Act. He says those reports are wrong and that talks with the administration are still moving forward in a positive way.
In a post shared on X on Sunday, January 18, Armstrong said suggestions that the White House walked away from the bill are inaccurate. He explained that the administration actually asked Coinbase to help explore a possible compromise with banks, especially smaller and regional lenders. Those discussions, he said, are already happening.
Armstrong pointed out that the biggest concern right now is how the bill could affect smaller banks. That issue is now front and center in ongoing talks.
His comments came after journalist Eleanor Terrett reported—citing an anonymous source—that the White House was unhappy with Coinbase for pulling its support for the CLARITY Act earlier this month without warning. According to that source, the move was seen as a betrayal and risked slowing the bill’s momentum. Terrett later stood by her reporting, even after Armstrong responded publicly.
At the heart of the dispute are the bill’s rules around stablecoins and decentralized finance.
The CLARITY Act is meant to clearly define how digital assets are regulated in the United States. It covers crypto exchanges, DeFi platforms, stablecoins, and tokenized assets.
Coinbase withdrew its support after reviewing the latest Senate draft. Armstrong said the wording could hurt DeFi innovation, limit tokenized stock products, and prevent stablecoin issuers from offering yield-like rewards to users. He also raised concerns about expanded government access to financial data and a shift of regulatory power toward the SEC, away from the CFTC.
That decision had immediate effects. A planned markup session in the Senate Banking Committee was postponed to give lawmakers more time to negotiate changes. This slowed the bill’s progress after it had already passed the House in 2025.
Despite the headlines, Armstrong says relations with the White House are still solid. He described recent conversations as “super constructive” and said the administration wants to strike a balance between encouraging crypto innovation and addressing concerns from traditional banks.
One of the biggest sticking points is stablecoin yield. Banks argue that if crypto companies offer returns, it could pull deposits out of the traditional banking system.
Opinions across the crypto industry remain split. Some believe passing a watered-down version of the bill is better than no rules at all. Others warn that locking in overly strict regulations could hurt the industry for years.
For now, talks are ongoing. Lawmakers are expected to review revised language in the coming weeks as they try to move the bill forward in the Senate.
