With midterms approaching, the administration wants the bill passed quickly to avoid political risk.
The White House is considering withdrawing its support for the US crypto market structure bill entirely after Coinbase pulled its backing and declined to return to negotiations, according to multiple reports.
Reportedly, the administration is pushing for a last-minute agreement on stablecoin yield rules that would satisfy banks and bring industry players back into alignment. If Coinbase refuses to re-engage, the White House may walk away from the bill.
The confrontation marks the latest twist in the CLARITY Act saga, which has unfolded rapidly over the past week.
Officials are said to be furious over what they describe as Coinbase’s “unilateral” move earlier this week. The company allegedly did not notify the administration in advance.
The House-passed CLARITY Act was designed to resolve a core issue in US crypto regulation. It decides whether most digital assets should be overseen by the Commodity Futures Trading Commission or the Securities and Exchange Commission.
Initially, that framework enjoyed broad industry support.
However, the Senate Banking Committee introduced a full rewrite of the bill, expanding SEC authority, tightening disclosure rules for tokens, restricting stablecoin rewards, and pulling parts of DeFi closer to bank-style compliance and surveillance regimes.
Coinbase responded by withdrawing support, arguing the Senate draft undermined tokenized equities, weakened the CFTC’s role, restricted DeFi, and allowed banks to curb competition in stablecoins.
That move immediately destabilized the bill’s path forward and contributed to the Senate delaying its planned markup.
The White House’s involvement reflects how politically important the bill has become for the Trump administration.
The White House is now pressing for a compromise on stablecoin yield. This is a key flashpoint between crypto firms and banks, in order to salvage the legislation and present a unified front.
Failure to do so could prompt the administration to pull its support rather than allow the bill to stall publicly under industry infighting.
Timing is now critical.
Passing the CLARITY Act before the November midterms would allow the Trump administration to claim a major legislative win on financial innovation, regulatory clarity, and US competitiveness in digital assets.
Delays beyond the midterms risk reshaping the political landscape entirely. Committee leadership could change, regulatory priorities could shift, and a new Congress may be less aligned with the administration’s approach to crypto markets.
For the White House, pushing the bill through quickly reduces political risk and avoids reopening negotiations under a potentially less favorable balance of power.
