White House considers dropping support for crypto bill amid Coinbase dispute

The White House is considering withdrawing its support for the CLARITY Act, a crypto market structure bill, if Coinbase fails to return to negotiations with an acceptable agreement on stablecoin yields for the banking sector. Eleanor Terrett, host of Crypto in America, reported the development, citing sources. According to the report, the White House stated that Coinbase's withdrawal of support came without prior notice and characterized the move as a betrayal of both the administration and the crypto industry. Coinbase previously rescinded its support for the bill, citing several issues. The company raised concerns over what it described as a de facto ban on tokenized stocks, provisions that could block DeFi and permit unlimited access to financial information, a weakening of the Commodity Futures Trading Commission's (CFTC) authority in favor of the SEC, and the potential for the legislation to block stablecoin reward functions.