The White House is "angered" by the withdrawal of support for the crypto bill by a certain compliance platform

Source: PortaldoBitcoin Original Title: White House is “furious” over Coinbase’s decision to abandon cryptocurrency legislation Original Link: https://portaldobitcoin.uol.com.br/casa-branca-esta-furiosa-com-decisao-da-coinbase-de-abandonar-projeto-de-lei-sobre-criptomoedas/ A certain compliance platform decided to withdraw support for the Digital Asset Market Clarity Act in the US, sparking dissatisfaction from the White House. This decision threatens one of the most significant regulatory initiatives in the US crypto industry.

According to information disclosed by journalist Eleanor Terrett in the Crypto in America segment, an individual close to the government stated that the exchange’s attitude was internally viewed as a “rug pull” against the government and the digital asset industry.

The dissatisfaction occurred before the project reached a critical stage in the Senate, when the compliance platform decided to withdraw from negotiations in what is considered a unilateral manner. An insider told Terrett that the White House might even completely abandon the bill text unless the company returns to the negotiating table to reach an agreement on the most sensitive issue of the proposal: profit sharing for stablecoins.

The controversy centers on the debate over paying yields to stablecoin holders. Traditional banking groups argue that allowing crypto platforms to offer interest-like returns could shift deposits from savings accounts, raising concerns about financial stability.

The preliminary version discussed in the Senate prohibits paying yields solely for holding stablecoins but allows rewards related to specific activities such as trading, liquidity provision, or staking.

For the compliance platform, these restrictions would have a significant economic impact. S&P Global’s forecast indicates that the company’s revenue related to stablecoins is expected to exceed $1 billion by 2025, mainly driven by partnerships with Circle and USDC transfers. Limiting this model could eliminate one of the company’s main growth sources.

Brian Armstrong, CEO of the compliance platform, responded to the criticism by claiming that the company is engaging in dialogue with banks under the guidance of the White House itself to seek a compromise. According to him, discussions are ongoing, and the government is acting in a “highly constructive” manner.

Nevertheless, Armstrong characterized this conflict as a lobbying attempt by the banking industry to block competition through regulation. In an interview with Fox Business, he stated that he believes it is unfair for banks to use political influence to prevent crypto companies from competing on equal footing.

Support for the project was withdrawn on Wednesday evening, just hours before the Senate Banking Committee began formal analysis of the bill. In a post on X, Armstrong listed a series of criticisms of the proposal, including what he called an indirect ban on tokenized stocks, restrictions on decentralized finance (which would grant the government “unlimited” access to financial records), and provisions he believes would weaken the CFTC’s authority in favor of the SEC. He wrote, “We would rather have no law at all than pass a bad law.”

This deadlock led to the postponement of the committee vote, casting a shadow over the project’s near-term prospects. Lawmakers have viewed the Clarity Act as a “all or nothing” measure, under pressure to make progress before the midterm election calendar reduces bipartisan consensus space.

Despite the tense situation, David Sacks, head of the White House’s crypto agenda, stated that the delay might help resolve remaining disagreements. He said that passing legislation to establish a framework for the crypto asset market is “closer than ever,” although the confrontation between the compliance platform, banks, and the government has exposed the political fragility behind regulatory efforts.