Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong has pushed back against claims that the White House is unhappy with the company’s handling of the crypto market structure bill.
CEO Pushes Back Against White House Report
Armstrong took to X to address a recent report by journalist and Crypto In America podcast co-host Eleanor Terrett, which suggested that the White House was considering withdrawing its support for the bill if Coinbase did not return to the negotiating table with a satisfactory yield agreement for banks.
According to Terrett’s post, the White House was reportedly upset by what it viewed as Coinbase’s “unilateral” actions and an apparent effort to speak on behalf of the entire industry.
Armstrong disputed the claims, saying the White House has been highly constructive and has even asked Coinbase to engage in negotiations with banks.
“The White House has been super constructive here,” Armstrong wrote on X.
Armstrong, who is also known for making digital assets accessible while navigating regulatory challenges, hinted at forthcoming ideas to support community banks through the bill.
Coinbase Withdraws Support Over Stablecoin Rewards
This development follows Coinbase’s dramatic withdrawal of support Wednesday for the crypto market structure bill, a draft legislation that would create a regulatory framework for cryptocurrency.
The bill, which was hoped to be landmark legislation, faced a setback when Coinbase objected to a provision that would eliminate stablecoin rewards for users.
Banks’ Influence Raises Questions About Crypto’s Future
Armstrong had previously urged Congress to ensure fair competition, saying banks’ influence over the crypto bill was stifling innovation and safeguarding their own interests.
This move was seen as a challenge to the traditional banking system, further underscored by Bank of America (NYSE:BAC) CEO Brian Moynihan‘s warning that stablecoins could siphon trillions of dollars from banks.
Earlier, without drawing a direct parallel, Armstrong noted that China’s decision to pay interest on its digital yuan gives the country a competitive advantage over the U.S. in digital currency adoption.
These recent developments raise questions about the future of digital assets in the U.S. and the role of traditional financial institutions in shaping this landscape.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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