Key Takeaways
- Stablecoin yield dispute stalls Senate progress on Crypto Clarity Act
- Coinbase faces pressure as banks oppose yield provisions in crypto bill
Tensions escalated between the White House and Coinbase as support for a major crypto bill weakened. Coinbase shares traded around $150 as political pressure mounted around the stalled legislation. The dispute now threatens the future of the Digital Asset Market Clarity Act in Congress. The Trump administration reacted sharply after Coinbase withdrew support for the bill.
White House vs Coinbase: Crypto Bill Drama Explained 🚨
The White House is reportedly furious at Coinbase after the exchange suddenly pulled support from the U.S. crypto market structure bill, the CLARITY Act.
Officials are calling Coinbase’s move a “rug pull”, saying they… pic.twitter.com/ZmbYX3N2Dn
— Karan Singh Arora (@thisisksa) January 17, 2026
Officials viewed the decision as disruptive to ongoing Senate negotiations. As a result, White House backing for the legislation now appears uncertain. Lawmakers delayed the Senate markup vote following the sudden shift by Coinbase. Banking groups continued raising objections to stablecoin yield provisions. These developments combined to stall momentum for the bipartisan effort.
White House Pushes Back Against Coinbase
The White House increased pressure on Coinbase to reengage with Senate leaders. Administration officials sought renewed talks to resolve stablecoin yield disagreements. They aimed to protect broader financial system interests alongside crypto innovation.
Officials believed Coinbase acted without coordination or advance notice. That move complicated negotiations already facing resistance from traditional banks. Consequently, frustration spread across both political and industry stakeholders. The administration signaled it may withdraw support if talks fail. This position raised the stakes for Coinbase and allied crypto firms. It also placed the bill’s future squarely in political uncertainty.
Stablecoin Yield Dispute Stalls Senate Momentum
Stablecoin yield limits emerged as the central obstacle to progress. Banks argued that higher yields could disrupt deposit flows and profitability. Crypto firms countered that yield flexibility supports competition and innovation. Senate leaders attempted to balance both sides during negotiations.
However, the absence of Coinbase support weakened industry alignment. This shift slowed bipartisan cooperation within key Senate committees. Senate Banking Committee leadership urged renewed good faith engagement. They emphasized consumer protection and financial stability goals. Still, divisions persisted as talks extended without resolution.
Political Stakes Rise for Trump’s Crypto Agenda
The Clarity Act formed a core part of Trump’s digital asset strategy. The bill aimed to define regulatory authority and market structure clearly. It also sought to position the United States as a crypto innovation leader. Political pressure intensified ahead of the 2026 midterm elections. Crypto users and firms increased lobbying efforts across party lines.
Democrats also engaged regulators as debates over oversight expanded. Industry executives warned that prolonged delays could harm competitiveness. Some leaders predicted eventual passage despite current tensions. For now, the bill remains suspended between compromise and collapse.
