Coinbase Halts Support, White House Reacts to Crypto Bill

Coinbase Halts Support, White House Reacts to Crypto Bill

Coinbase CEO Brian Armstrong announced on January 14, 2026, the withdrawal of the companyโ€™s support for the Digital Asset Market Clarity Act, prompting potential White House withdrawal from the bill.

Coinbaseโ€™s decision highlights regulatory challenges within the crypto industry, as disputes over stablecoin yields and DeFi rules threaten legislative progress and market stability.

Coinbaseโ€™s withdrawal of support for a proposed U.S. crypto bill highlights tensions surrounding crypto market regulation. The move might affect the White Houseโ€™s stance, raising concerns on how the legislation will shape the industryโ€™s future.

Key figures include Coinbase CEO Brian Armstrong and White House officials. Armstrong cited privacy and DeFi concerns as critical issues. The White House described the withdrawal as a โ€œrug pull,โ€ showing a rift in crypto policy goals.

Coinbase Withdraws, Sparking White House Concerns

Coinbaseโ€™s withdrawal of support for a proposed U.S. crypto bill highlights tensions surrounding crypto market regulation. The move might affect the White Houseโ€™s stance, raising concerns on how the legislation will shape the industryโ€™s future.

Key figures include Coinbase CEO Brian Armstrong and White House officials. Armstrong cited privacy and DeFi concerns as critical issues. The White House described the withdrawal as a โ€œrug pull,โ€ showing a rift in crypto policy goals.

Industry Faces Uncertainty Amid Regulatory Scrutiny

Coinbaseโ€™s decision may affect the whole industry. White House reconsideration of the bill highlights the importance of stakeholder alignment. The withdrawal raises questions on future regulatory practices and industry dynamics.

Potential financial outcomes include impacts on stablecoin yields and DeFi markets, notably affecting user returns. Historical trends show strong market reactions, with regulatory changes often causing significant industry shifts.

Regulatory Pushback Parallels: The Genius Act Example

Past cases, like the Genius Act, demonstrate industry pushback on restrictive crypto regulations. Stablecoin-related events often create considerable marketplace shifts, indicating potential impacts if similar legislative tensions arise.

Expert insights from Kanalcoin suggest significant market implications if the crypto market structure bill isnโ€™t resolved. Historical data denotes volatility with regulatory announcements, underlining the need for clear industry guidelines to maintain stability.

Brian Armstrong, CEO, Coinbase, โ€œAfter reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately canโ€™t support the bill as written. There are too many issues, including: โ€“ A defacto ban on tokenized equities โ€“ DeFi prohibitions, giving the government unlimited access to your financialโ€ฆโ€ source
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