White House May Revoke Support for Crypto Legislation Amid Coinbase Dispute

White House Considers Revoking Support for Crypto Legislation

The White House is contemplating withdrawing its support for a crucial crypto market structure bill following Coinbase's decision to halt negotiations, according to reports from Crypto In America's Eleanor Terrett.

Key Takeaways

• The administration may retract its backing unless Coinbase resumes talks with a bank-approved yield agreement.
• Coinbase's unexpected move has been labeled a 'rug pull' by the administration, creating tensions with both the government and the crypto sector.

Coinbase's withdrawal from negotiations comes ahead of a significant Senate Banking Committee session. CEO Brian Armstrong has publicly opposed certain aspects of the draft bill, citing issues like a de facto ban on tokenized equities and DeFi restrictions.

The administration's discontent stems from what they describe as a 'unilateral' decision by Coinbase, made without prior consultation, which they see as undermining both the bill and the broader industry.