White House blasts Coinbase’s last‑minute exit from Trump’s CLARITY Act talks as a “rug pull” on both the administration and the wider crypto industry, after the exchange abruptly withdrew support over DeFi, tokenized‑equity, privacy and stablecoin‑yield provisions that also forced a Senate Banking markup delay.

The White House has sharply criticized Coinbase for abruptly withdrawing its support for the Trump administration–backed CLARITY Act, a comprehensive U.S. digital asset market‑structure bill, just before a key Senate Banking Committee markup. Reports citing a source close to the administration say officials felt “blindsided” and characterized Coinbase’s move as a “rug pull” on both the White House and the broader crypto industry, contributing to the committee’s decision to delay the markup session. Coinbase had initially backed the House‑passed version of the CLARITY Act but pulled support after the Senate Banking Committee’s rewrite, arguing that new provisions would effectively ban or sharply constrain tokenized equities, extend Bank Secrecy Act–style obligations and data access into DeFi, expand SEC authority at the expense of the CFTC, and introduce stablecoin and banking rules that could let large banks limit competition and eliminate stablecoin yield for users. At the center of the standoff is language, tied to the separate GENIUS Act, that would prohibit stablecoin issuers from offering yield or interest, a measure supported by U.S. banks worried about “deposit flight” if on‑chain dollars can pay returns. Coinbase’s withdrawal the day before markup forced Senate Banking Chair Tim Scott to cancel or delay the session, raising the risk that CLARITY — a flagship Trump administration initiative — could stall again. In response, reporting by journalist Eleanor Terrett and others indicates the White House has considered pulling its support for the entire bill unless Coinbase returns to negotiations with a compromise on stablecoin yields that satisfies banks and keeps the industry coalition intact, underscoring how much the administration has invested in the legislation’s success. Coinbase CEO Brian Armstrong has publicly pushed back on the notion of a full‑blown rift, calling claims that the White House is about to abandon the bill “not accurate” and describing ongoing talks as “super constructive,” while confirming that the administration has tasked Coinbase with working out a stablecoin‑yield deal with banks, especially regional lenders. The episode highlights deep fault lines between major crypto platforms, traditional banks, and regulators over DeFi oversight, tokenized securities, privacy, and whether stablecoins should be allowed to pay yield — all issues that will shape the eventual U.S. regulatory framework for digital assets.

✨ AI-generated background, compiled from web sources — not editorial content.

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