{"id":543250,"date":"2026-01-18T08:33:49","date_gmt":"2026-01-18T08:33:49","guid":{"rendered":"https:\/\/www.crypto-news-flash.com\/?p=1276668"},"modified":"2026-01-18T08:33:49","modified_gmt":"2026-01-18T08:33:49","slug":"trump-administration-threatens-to-drop-crypto-bill-if-coinbase-doesnt-accept-yield-deal","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2026\/01\/18\/trump-administration-threatens-to-drop-crypto-bill-if-coinbase-doesnt-accept-yield-deal\/","title":{"rendered":"Trump Administration Threatens to Drop Crypto Bill if Coinbase Doesn\u2019t Accept Yield Deal"},"content":{"rendered":"<div class=\"eth-editorial-banner\"> <img decoding=\"async\" class=\"eth-editorial-logo\" src=\"https:\/\/www.crypto-news-flash.com\/wp-content\/uploads\/2025\/11\/cnf2-scaled-1-1-1.png\" alt=\"Crypto News Flash\"> <span class=\"eth-editorial-text\">All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.<\/span> <\/div>\n<ul>\n<li><b>White House threatens to drop Trump-backed crypto bill unless Coinbase returns and satisfies banking demands.<\/b><\/li>\n<li><b>Coinbase blames banks for blocking stablecoin yields while the industry splits on whether the exchange undermined legislation.<\/b><\/li>\n<\/ul>\n<hr>\n<p><span>The Trump administration is warning it may walk away from the Digital Asset Market Clarity Act after Coinbase withdrew its support. The move has triggered strong reactions from officials, with the White House reportedly \u201cfurious\u201d over what it viewed as a unilateral decision by the exchange. According to journalist Eleanor Terrett, a source close to the administration <a href=\"https:\/\/x.com\/EleanorTerrett\/status\/2012344025802490208\" target=\"_blank\" rel=\"nofollow noopener\">called <\/a>Coinbase\u2019s action a \u201crug pull\u201d that shocked government officials and the broader industry.<\/span><\/p>\n<p><span>Coinbase\u2019s CEO, Brian Armstrong, <a href=\"https:\/\/x.com\/brian_armstrong\/status\/2011545247105355865\" target=\"_blank\" rel=\"nofollow noopener\">cited<\/a> growing influence from banking interests in the bill\u2019s latest version. He argued that the current draft would severely restrict users\u2019 ability to earn yields on <a href=\"https:\/\/www.crypto-news-flash.com\/understanding-stablecoins-the-backbone-of-digital-finance\/\">stablecoins<\/a> and included provisions that effectively block <a href=\"https:\/\/www.crypto-news-flash.com\/what-is-tokenisation-a-complete-asset-digitalisation-guide\/\">tokenized<\/a> equities.&nbsp;<\/span><\/p>\n<p><span>Armstrong also raised concerns about expanded surveillance powers that would compromise financial privacy and reduce the authority of the Commodity Futures Trading Commission in favor of the Securities and Exchange Commission.<\/span><\/p>\n<p><span>The administration now expects Coinbase to return to the negotiation table. \u201cThis is President Trump\u2019s bill at the end of the day, not Brian Armstrong\u2019s,\u201d the source told Terrett. Officials are pushing for a revised version that meets the demands of banking groups and resolves the disagreement around stablecoin yields.<\/span><\/p>\n<figure id=\"attachment_1276679\" aria-describedby=\"caption-attachment-1276679\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-1276679 size-full\" src=\"https:\/\/www.crypto-news-flash.com\/wp-content\/uploads\/2026\/01\/White-House-is-considering-pulling-its-support-for-the-crypto-market-structure-bill.jpg\" alt=\"Trump Administration Threatens to Drop Crypto Bill if Coinbase Doesn\u2019t Accept Yield Deal\" width=\"479\" height=\"360\"><figcaption id=\"caption-attachment-1276679\" class=\"wp-caption-text\">Source: Eleanor Terrett on X<\/figcaption><\/figure>\n<h2><b>Crypto Users Split on Coinbase Strategy<\/b><\/h2>\n<p><span>Coinbase\u2019s sudden withdrawal has widened divisions within the crypto industry. Critics, including Citron Research,<a href=\"https:\/\/x.com\/CitronResearch\/status\/2011830864812945856\" target=\"_blank\" rel=\"nofollow noopener\"> accused<\/a> Armstrong of undercutting the bill for business reasons. They suggested the firm fears competition from tokenized securities platforms and wants clarity without sharing the benefits with rivals. Supporters of the bill worry that one company\u2019s objections may derail legislation meant to address larger regulatory gaps.<\/span><\/p>\n<p><span>Others in the space sided with Armstrong. Nic Carter of Coin Metrics<a href=\"https:\/\/x.com\/nic_carter\/status\/2012348939106668777\"> wrote<\/a>, \u201cThen the banks should stop trying to screw everyone over,\u201d accusing financial institutions of trying to protect their savings deposits by cutting off competition from digital alternatives. Many in the crypto sector believe the bill favors banks at the expense of innovation and user choice.<\/span><\/p>\n<p><span>Ripple\u2019s Brad Garlinghouse chose not to engage directly, while general reaction across the community remains mixed. Some believe Coinbase overstepped its influence. \u201cCoinbase is not crypto. Coinbase is one exchange in crypto,\u201d one user noted, emphasizing that no single entity should control the direction of regulatory policy.<\/span><\/p>\n<h3><b>Senate Delay May Push Crypto Bill to February<\/b><\/h3>\n<p><span>The Senate Banking Committee canceled the scheduled markup session for January 15. No replacement date has been announced. Some insiders suggest the delay could stretch into February. Senator Cynthia Lummis acknowledged the bill\u2019s current draft needs a rethink. She said,<\/span><\/p>\n<blockquote>\n<p><span>\u201cIt\u2019s going to take a while to develop a plan on how to make another run at it. I\u2019m not going to reach out to do it immediately. People need a chance to soak in what happened.\u201d<\/span><\/p>\n<\/blockquote>\n<p><span>Despite the pause, some remain hopeful. Galaxy Digital CEO Mike Novogratz <a href=\"https:\/\/www.youtube.com\/watch?v=v6v0rlUMGOI\" target=\"_blank\" rel=\"nofollow noopener\">said<\/a> he expects the Clarity Act to pass within the next two weeks, citing his conversations with senators. He believes the recent fallout won\u2019t prevent lawmakers from eventually reaching an agreement on a workable bill.<\/span><\/p>\n<p> <a href=\"https:\/\/www.crypto-news-flash.com\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders. White House threatens to drop Trump-backed crypto bill unless Coinbase returns and satisfies banking demands. Coinbase blames banks for blocking stablecoin yields while the industry splits on whether the exchange undermined legislation. The Trump administration is warning it may walk [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":543251,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[475,195,4713,25,21766],"class_list":{"0":"post-543250","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-other","8":"tag-brian-armstrong","9":"tag-coinbase","10":"tag-crypto-bill","11":"tag-news","12":"tag-trump-administration"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/543250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=543250"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/543250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/543251"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=543250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=543250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=543250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}