Well-liked journalist Eleanor Terrett reported earlier immediately that the Trump administration is contemplating withdrawing its help for the cryptocurrency market construction invoice fully if Coinbase doesn’t return for negotiations.
The trade and its CEO blamed banks for intervening and pushing for modifications that forestall or restrict customers from incomes yields on stablecoins. Nevertheless, different trade consultants disagreed.
White Home Threatens
By citing a supply near the Trump administration, Terrett mentioned the White Home expects Coinbase to return with a extra appropriate settlement that “satisfies the banks and will get everybody to a deal.”
She defined that the administration is “mentioned to be livid” with the trade’s “unilateral” choice on Wednesday, as they reportedly didn’t notify prematurely. Furthermore, the White Home reportedly known as the transfer a “rug pull” towards it and the remainder of the crypto trade.
SCOOP: The White Home is contemplating pulling its help for the crypto market construction invoice fully if @coinbase doesn’t come again to the desk with a yield settlement that satisfies the banks and will get everybody to a deal, a supply near the Trump administration tells me.…
— Eleanor Terrett (@EleanorTerrett) January 17, 2026
The supply additional asserted that that is “President Trump’s invoice on the finish of the day, not Brian Armstrong’s.”
Recall that Coinbase pulled its help earlier this week after blaming banks for implementing too many modifications that are likely to restrict customers from incomes yields on stablecoins. CEO Armstrong outlined quite a few points with the present draft, together with:
– A de facto ban on tokenized equities
– DeFi prohibitions, giving the federal government limitless entry to your monetary data and eradicating your proper to privateness
– Erosion of the CFTC’s authority, stifling innovation, and making it subservient to the SEC
– Draft amendments that might kill rewards on stablecoins, permitting banks to ban their competitors
Undermining the Invoice?
Coinbase’s choice brought on a variety of controversy inside and outside the cryptocurrency trade. Whereas some consultants, similar to Ripple’s Brad Garlinghouse, remained totally on the sidelines, others, similar to Citron Analysis, straight blamed Armstrong for undermining the invoice.
They argued that Coinbase’s official reasoning reveals concern of competitors from tokenized securities corporations, because it seeks to learn from regulatory readability with out opening the door to rivals.
The Senate Banking Committee postponed its scheduled markup of the invoice on January 15, and no new date has been set but.
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