Brian Armstrong, the CEO of crypto exchange Coinbase, denied reports that the White House is considering withdrawing support for the CLARITY Act, a bill geared toward structuring the crypto market, and in addition denied rumors that the federal government is “offended” with Coinbase.
“The White House has been extremely constructive here. They have asked us to see if we are able to reach an agreement with the banks, which we’re currently working on,” Armstrong said.
On Friday, independent journalist Eleanor Terrett reported on a conflict between Coinbase and US President Donald Trump's administration, with the White House threatening to withdraw support for the market structure bill if Coinbase didn’t resume negotiations.
Source: Brian Armstrong
Coinbase withdrew its support for the CLARITY Act on Wednesday amid concerns the laws would gut the decentralized finance (DeFi) sector, ban trading in tokenized stocks and ban the sharing of stablecoin yields with customers.
“We'd quite haven’t any bill than a nasty bill. Hopefully we are able to all get to a greater bill,” Armstrong said Wednesday, while sharing a listing of industry concerns in regards to the latest bill.
The US Senate Banking Committee has postponed the planned CLARITY Act expansion, originally scheduled for Thursday, until lawmakers and the crypto industry can negotiate more acceptable terms.
Armstrong said he expects a brand new addition to the bill in a “few” weeks and called the provisions within the stalled version of the bill “disastrous” for consumers, reflecting widespread concerns from crypto industry executives.
The first page of the CLARITY Act. Source: US Senate
The CLARITY Act leaves a divide within the crypto industry because the battle over stablecoin yield intensifies
The CLARITY Act has created a rift inside the crypto industry. Some industry executives argue that despite the drawbacks, the bill is overall positive for the sector, while others argue that it represents a significant setback for the industry
At the guts of the controversy is the problem of passing on stablecoin earnings to customers, which is prohibited in the most recent version of the bill.
Critics of the bill say it protects banking interests on the expense of the crypto industry and stifles innovation in financial technology.
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