The future of US crypto market structure legislation has been thrown into doubt after reports that the White House is considering withdrawing its support for the Digital Asset Market Clarity Act (CLARITY). The development follows Coinbase’s decision to pull its backing for the bill, citing concerns that the current draft could harm core areas of the digital asset industry.
Coinbase Withdrawal Sparks White House Backlash
Administration officials Terrett were angered by Coinbase’s sudden withdrawal describing it as a unilateral move that caught policymakers off guard. The bill has been viewed internally as a key part of the administration’s digital asset agenda, and officials are reportedly weighing whether to abandon it entirely unless negotiations resume and compromises are reached.
In a Sunday post on X, Terrett reported;
Coinbase has warned that the draft legislation could restrict decentralized finance, effectively block tokenized equities, and eliminate stablecoin reward mechanisms. The exchange also raised concerns about expanded regulatory authority and potential impacts on user privacy. One of the most contentious points remains stablecoin yield, which banking groups argue could threaten traditional deposits.
Industry and Policy Divide Widens
The standoff has deepened divisions within the crypto sector. Some market participants support Coinbase’s stance, arguing the bill favors incumbents over innovation. Others counter that no single company should exert outsized influence over national policy.
Nic Carter, cofounder of Coin Metrics, wrote on X;
With tensions rising and negotiations stalled, the CLARITY Act now faces an uncertain path forward, underscoring the fragile balance between regulation, innovation, and political consensus in US crypto policy.
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