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CLARITY Act Talks Continue as Coinbase Pushes for Revisions
Key Takeaways
- Brian Armstrong denied reports of tension with the White House and said talks on the CLARITY Act are still ongoing;
- Coinbase withdrew support for the bill, as it could hurt DeFi, tokenized stock trading, and stablecoin yield services;
- Lawmakers delayed the bill’s review to allow more discussion, and Armstrong expects a revised version in the coming weeks.
Coinbase
Armstrong said in a post on X on January 18, "The White House has been super constructive here. They did ask us to see if we can go figure out a deal with the banks, which we're currently working on".
His statement followed reports by journalist Eleanor Terrett suggesting that Coinbase and the Trump administration had clashed.
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According to the report, the White House had allegedly warned it might withdraw its backing for the bill if Coinbase did not return to negotiations.
On January 14, Coinbase withdrew its support for the CLARITY Act. The company said the current version of the bill could harm decentralized finance, block trading of tokenized stocks, and prevent companies from offering stablecoin yield to users.
Armstrong stated, "We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft".
The US Senate Banking Committee later postponed its planned review of the bill. The delay gives lawmakers and crypto industry leaders more time to find terms both sides can accept.
Armstrong said he expects a new version of the bill to be ready in the coming weeks. He described parts of the current draft as harmful to users and said many industry leaders share that concern.
Meanwhile, US Senator Elizabeth Warren urged the Office of the Comptroller of the Currency (OCC) to pause consideration of World Liberty Financial's application for a national trust bank charter. What did she say? Read the full story.