White House, Coinbase Clash Over Crypto Market Structure Bill

A fresh dispute has emerged between the White House and Coinbase over the future of the crypto market structure bill, underscoring the fragile coalition behind the legislation.

On Saturday, CryptoInAmerica reporter Eleanor Terrett revealed that the Trump administration is considering pulling its support for the bill if Coinbase does not return to negotiations with a yield agreement that satisfies the banking sector. According to a source close to the administration, officials were blindsided by Coinbase’s unilateral move and described it as a “rug pull” against both the White House and the broader industry. The source stressed that “this is President Trump’s bill at the end of the day, not Brian Armstrong’s,” signaling frustration with the exchange’s outsized influence.

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The report quickly drew a response from Coinbase CEO Brian Armstrong, who disputed the characterization of White House anger. “In general, love your posts, but this is not accurate. The White House has been super constructive here,” Armstrong wrote. He acknowledged, however, that administration officials had asked Coinbase to work out a deal with banks on yield provisions.

Armstrong added that the company is developing ideas to support community banks specifically, framing the negotiations as part of a broader effort to balance innovation with financial stability.

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Terrett later pushed back, insisting her reporting was “airtight and accurate.” She noted that Armstrong’s own comments confirmed the central point of her story: White House support for the bill now appears contingent on Coinbase securing a yield compromise.

The exchange highlights the delicate politics surrounding the market structure bill, which aims to clarify jurisdiction between the SEC and CFTC while setting rules for stablecoins, DeFi protocols, and token issuance. The legislation has been billed as a cornerstone of President Trump’s financial agenda, but divisions within the industry threaten to derail momentum.

Coinbase’s stance has already set it apart from peers such as Circle, Ripple, and Kraken, which have signaled willingness to work within the proposed framework. The White House’s insistence on a yield deal reflects pressure from community banks, which fear being sidelined by stablecoin issuers and tokenized yield products.