White House Rejects Rumors That Coinbase Is Blocking the CLARITY Act

The White House is pushing back on renewed speculation that Coinbase is trying to torpedo the CLARITY Act by opposing the latest stablecoin yield compromise. Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, said in a post on X that the claims were "uninformed FUD." Witt suggested last week's stablecoin yield deal struck between the Senate and the White House could restore momentum for the bill. The rumors gained traction after a Punchbowl News (PBN) report. PBN reporter Brendan Pedersen wrote that exchange representatives told the Senate on Monday that Coinbase could not support the current stablecoin yield agreement. Pedersen added the pushback did not appear as forceful as Coinbase CEO Brian Armstrong's public opposition to the bill in January. Supporters of stablecoin yield said they were still hearing concerns tied to Armstrong, while others urged him to let the measure advance and address fixes later. Delphi Ventures founder Tommy Shaughnessy also called on Armstrong to soften his stance against the yield compromise and the broader crypto legislation. Under the recent deal, stablecoin yield would be narrowed to account activity rather than the passive interest currently earned on balances through intermediaries. The change was viewed as a win for banks. As of publication, the industry had not issued a public statement on whether it supports the compromise, and Armstrong had not publicly addressed the reported opposition. Sen. Cynthia Lummis said the bill cannot be delayed, arguing the current pro-crypto political environment offers the best opportunity to establish clear rules for the sector. Markets also reacted to the draft's tighter yield language. Circle's stock (CRCL) slid about 20% on Tuesday, falling from $127 to $98, before recovering to above $100 on Wednesday. Final Summary: Trump's crypto advisor rejected claims that Coinbase is fighting the stablecoin yield deal, calling them "uninformed FUD." The proposed yield restrictions helped spark a 20% drop in Circle shares this week.