Coinbase CEO Brian Armstrong has dismissed reports of escalating tensions between the exchange and the Trump administration. He stressed that cooperation surrounding the CLARITY Act remains "very positive."
This comes after a report from cryptocurrency journalist Eleanor Terrett, who said the White House was very unhappy with Coinbase.
Polymarket forecasts a 41% chance that the CLARITY bill will pass this year.
According to the article, officials were prepared to withdraw their support for the bill unless Coinbase returned to the negotiating table and accepted a deal with conditions regarding stablecoin interest rates.
At the heart of this controversy is the traditional banks' fear of "deposit flight" .
Community and regional banks warn that if crypto exchange are allowed to pay high interest rates on stablecoins, depositors will withdraw money from low-interest savings accounts to invest in USD-denominated fixed-rate digital assets, which could jeopardize the stability of the banking system.
However, Armstrong denied the notion that the White House was pressuring for the bill to "kill." Instead, he XEM it as a request from the White House to find solutions to the specific concerns of regional banks.
He also stated that the government had instructed Coinbase to negotiate directly with the banks, and that specific details of the agreement would be announced in due course.
"In fact, our team has quite a few good ideas to support community banks specifically in this bill, because that's the focus," Armstrong Chia on social media platform X.
These tensions highlight the fragility of the comprehensive legislation aimed at bringing legal clarity to the digital asset industry.
Earlier this week, Coinbase indicated it might withdraw its support for the CLARITY Act . The reason is that the bill could ban Tokenize stocks, tighten regulations on DeFi , and end the stablecoin reward program on the exchange.
Meanwhile, many other crypto businesses are closely monitoring the developments of these negotiations.
Ripple CEO Brad Garlinghouse stated that while the legislative process is always controversial, the Senate's recent actions represent a "significant step forward" in protecting users and building an effective legal framework for the industry.
“Ripple (and I personally) understand very well that clear transparency is better than chaos. If this bill succeeds, it will also be a success for the crypto industry. We are always engaged and ready to continue the fair debate,” he said.
Despite some optimism, the market remains quite skeptical about the progress of the CLARITY bill. On the Polymarket platform , traders currently rate the likelihood of the bill being passed this year at only 41%.
