Coinbase CEO Dismisses Claims of White House Threat Over CLARITY Act

The debate surrounding the CLARITY Act has intensified following Coinbase CEO Brian Armstrong's refutation of claims that the White House threatened to withdraw support. Armstrong confirmed that the administration remains engaged and constructive.

Armstrong Refutes CLARITY Act Withdrawal Claims

In response to journalist Eleanor Terrett's assertions, Armstrong clarified in an X post that the reports were inaccurate. He emphasized that negotiations with banks are ongoing and that the White House has been supportive. Coinbase is actively working on policy proposals aimed at benefiting community banks.

Coinbase Chief Legal Officer Paul Grewal echoed Armstrong's sentiments in a reassuring X post, highlighting transparency from the White House and reaffirming Coinbase's commitment to retail protections.

Arrington Criticizes Banking Sector Over Yield Limits

Michael Arrington criticized banks for restricting interest on customer deposits in an X post, accusing them of protecting their interests at the expense of consumers. He argued that powerful banking lobbies influence lawmakers to impose stablecoin yield restrictions, which he believes harm American consumers.

Arrington's comments follow Bank of America CEO Brian Moynihan's warning that yield-generating stablecoins could significantly impact traditional bank deposits, potentially affecting bank liquidity and lending capabilities.

Armstrong concurred with Arrington's perspective, suggesting that banking lobbies are influencing crypto legislation discussions.

Industry leaders remain uncertain about the CLARITY Act's progress, though Galaxy Digital CEO Mike Novogratz expressed optimism that the bill could pass within two weeks. Novogratz called for a pragmatic approach, suggesting that unresolved issues, like stablecoin yield restrictions, could be revisited later.