The White House is considering withdrawing its support entirely from the US crypto market regulation bill after Coinbase announced it was ceasing its support and refusing to return to the negotiating table, according to several recent reports.
Currently, the administration is trying to reach a last-minute agreement on stablecoin profit regulations to satisfy banks and bring industry stakeholders back to a consensus. If Coinbase does not return to negotiations, the White House may withdraw from the bill.
The confrontation over the CLARITY Act is becoming increasingly tense.
This confrontation is the latest development in the heated debate surrounding the CLARITY Act that has been raging throughout the past week.
Officials were reportedly furious about Coinbase's unilateral decision to withdraw without prior notification to authorities.
The CLARITY Act, passed by the House of Representatives, is designed to address a key issue in the regulation of crypto in the U.S.: deciding XEM the majority of digital assets should be regulated by the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC).
Initially, this bill received widespread support from the crypto industry.
However, the Senate Banking Committee completely rewrote the bill , expanding the SEC's oversight, tightening regulations on Token disclosure, limiting stablecoin profits, and bringing DeFi operations closer to the same regulatory oversight as traditional banks.
Shortly afterward, Coinbase withdrew its support, arguing that the Senate's new draft bill undermines Token equities, diminishes the Vai of the CFTC, hinders DeFi operations, and allows banks to restrict competition in the stablecoin sector.
This move has made the bill's progress uncertain and contributed to the Senate postponing the planned vote.
Why is the White House interfering?
The White House's involvement indicates that this bill holds significant political importance for the Trump administration.
The White House is currently working to find a compromise on stablecoin yields – a flashpoint between crypto companies and banks – to save the bill and secure consensus from stakeholders.
If no agreement is reached, the administration may withdraw its support rather than let the bill be delayed due to internal industry disputes.
The present moment is extremely important.
If the CLARITY Act is passed before the midterm elections in November , the Trump administration could XEM it as a major boost to financial innovation, clearly demonstrating increased regulation and competitiveness in the digital asset sector.
If the process is delayed beyond the election, the political landscape could change completely: committee leadership could shift, regulatory priorities could change, and the new Congress might no longer agree with the administration's direction on the crypto market.
For the White House, passing the bill early would reduce political risk and avoid having to reopen negotiations under a potentially more unfavorable balance of power.
