The CEO of a compliant platform denies confrontation with the US government over the stablecoin legislation.

Source: Yellow Original Title: Coinbase CEO Denies Clash with White House Over Stablecoins Battle in the CLARITY Act

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Background

The CEO of a compliance platform denied reports that the Trump administration threatened to revoke support for cryptocurrency legislation, after the exchange withdrew support for the bill earlier this week.

The CEO stated that the White House has been very constructive and urged the platform to directly negotiate with banks regarding the terms of stablecoin yields.

The Senate Banking Committee postponed its scheduled review meeting just hours after the platform withdrew support on January 14, causing uncertainty in the bill’s timetable.

What happened

According to reports, White House officials expressed “anger” over the platform’s withdrawal and are considering abandoning the CLARITY bill altogether.

The CEO directly challenged this claim, asserting that government officials asked the platform to work with banking groups to address concerns about stablecoin yields.

“Actually, we’ve been working on good ideas about how to specifically help community banks in the bill,” the CEO wrote on social media.

The controversy centers on restrictions on crypto platforms earning passive income from stablecoin holdings, which represent about $1 billion in annual revenue for the platform.

Community and regional banks warn that allowing high-yield stablecoins could accelerate deposit outflows from traditional savings accounts (which pay significantly lower interest rates).

Why it matters

The dispute over stablecoin yields highlights a fundamental tension between crypto innovation and banking stability, as lawmakers attempt to regulate digital assets comprehensively.

Reasons for the platform’s withdrawal include concerns over tokenized stocks, bans on decentralized finance, and what the CEO calls regulatory capture of banking interests.

White House crypto officials urged industry players to “resolve any outstanding differences,” noting that “the passage of market structure legislation is closer than ever.”

Industry reactions are sharply divided, with the CEO of a payment network calling the bill a “huge step forward,” while a policy chief at an exchange warned that the withdrawal will “entrench uncertainty.”

The delay effectively pushes large-scale crypto regulatory reform into late 2026 or 2027, as lawmakers face midterm election pressures and limited legislative windows.