Coinbase CEO Brian Armstrong has denied reports of a growing dispute with the Trump administration. He emphasized that collaboration on the CLARITY Act remains "very constructive."
This came after a report from crypto journalist Eleanor Terrett. She said the government is angry at the exchange.
Polymarket: The CLARITY Act has a 41 percent chance of being passed this year
According to the report, the responsible parties were ready to end support for the legislation if Coinbase did not return to negotiations with a compromise on stablecoin revenues.
At the heart of the dispute is the traditional banking sector's concern about “deposit outflows.”
Community and regional banks fear that crypto exchanges with high yields on stablecoins could cause further outflows of deposits. They argue that customers might shift money from low-interest savings accounts to digital assets pegged to the dollar. This could increase risks to the stability of banks.
However, Armstrong disputed the claim that the White House wanted to prevent the law. Instead, he portrayed the situation as a strategic mandate from the government to address the specific concerns of regional banks.
He said the White House had asked the exchange to negotiate a deal with the banks. The exact details would be “coming soon.”
“In fact, we have developed some good ideas on how to specifically help community banks in the law, because that’s exactly what it’s about,” wrote Armstrong on the platform X.
This dispute shows that the comprehensive law is still uncertain. It is intended to bring the long-desired clarity in regulation for the crypto industry.
Earlier this week, Coinbase hinted at withdrawing support for the CLARITY Act. The exchange cited reasons such as bans on tokenized stocks, restrictions on decentralized protocols, and the elimination of stablecoin rewards.
Other companies in the industry are closely monitoring the negotiations.
Ripple CEO Brad Garlinghouse said that while the legislative process remains contentious, the Senate's push represents a “huge step forward” for consumer protection and a clear framework.
“Ripple (and I) know firsthand that clarity is better than chaos, and the success of this law is also the success of crypto. We are at the table and will continue to move forward with fair debate,” he said.
Despite this optimism, the prediction markets remain skeptical regarding the timeline. On the betting platform Polymarket, traders currently see only a 41 percent chance that the law for market structure will come into effect this year.
