The administration’s hesitation may stem from regulatory concerns, lack of industry consensus, and political timing.
The latest reports suggest that the White House could be reconsidering its support for the crypto market structure bill. This is after Coinbase abruptly withdrew its backing. It could withdraw support if Coinbase does not return with a yield agreement that satisfies banks and helps secure a broader deal.
This development poses the risk of slowing the crypto bill’s path through the US Congress. It also heightens tensions between the crypto sector and Washington regulators.
Eleanor Terrett, a reputed journolist and host, broke this news through her latest tweet. She stated that the White House does not seem pleased with Coinbase’s bilateral decision.
It is one of many companies operating in the crypto industry, and its views cannot represent the entire industry’s.
When Donald Trump took office, his administration carried out several high-profile pro-crypto actions. He signed an executive order to prohibit the issuance of a U.S. central bank digital currency (CBDC) and to promote digital asset technology. That move clearly signaled that this administration supports blockchain innovation.
The White House established a presidential working group on digital assets to help shape a national regulatory framework. Many in the crypto community welcomed the move. They viewed it as a positive step toward clearer rules and stronger industry support.
The White House’s hesitation on the crypto bill might surprise many crypto enthusiasts. After all, it has previously supported other crypto legislation, which became law. The GENIUS Act is the best example, which President Trump signed in mid-2025. That moment marked a huge crypto policy milestone.
The Trump administration has followed a cautious approach when it comes to the crypto market structure bill. While it has emphasized the need for clear, bipartisan rules, its support has not been unconditional.
The White House has engaged in consultations and negotiations with lawmakers and industry players. It signals that the bill’s backing may depend on reaching agreements that satisfy both regulators and key stakeholders.
Coinbase abruptly withdrew its support just before a key Senate Banking Committee markup. This unexpected move caused the committee to postpone discussion of the bill and highlighted deep disagreements over the draft’s language and implications.
Coinbase stock (COIN) fell roughly 6-6.5%, following the company’s CEO Brian Armstrong’s announcement. This move spooked the company’s investors and caused broad selling pressure.
Recent developments indicate that the White House is frustrated with Coinbase’s action on January 15. Officials view the move as unilateral and were not notified in advance, describing it as a sudden shift that caught both the crypto industry and regulators off guard.
The White House has not made any official announcement regarding dropping crypto bill support. However, credible sources point in that direction. It might even happen if Coinbase does not return to negotiations.
The American cryptocurrency exchange needs to propose a yield agreement that satisfies banks and secures a deal. That’s what a source close to the Trump administration revealed.
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