According to journalist Eleanor Terrett, the Trump administration is weighing whether to fully withdraw its backing of the crypto market structure bill if Coinbase refuses to re-enter negotiations.
Citing a source close to the White House, Terrett reported that officials expect Coinbase to return with a revised position that “satisfies the banks and brings all parties to an agreement.” The administration is said to be angry over Coinbase’s sudden decision to pull support earlier this week, allegedly without prior notice, calling the move a “rug pull” against both the White House and the broader crypto industry. The source emphasized that the legislation is ultimately “President Trump’s bill, not Brian Armstrong’s.”
Coinbase and its CEO blamed banks for pushing amendments that would restrict or eliminate yield-earning opportunities on stablecoins. Armstrong also raised concerns about provisions in the current draft, including an effective ban on tokenized equities, limits on DeFi, expanded government access to financial data, reduced CFTC authority in favor of the SEC, and changes that could allow banks to suppress stablecoin competition.
The decision has sparked division across the crypto sector. While some industry leaders stayed neutral, others such as Citron Research accused Coinbase of weakening the bill, suggesting the exchange is attempting to protect its own interests by limiting competition from tokenized securities firms.
Following the backlash, the Senate Banking Committee delayed its planned January 15 markup of the bill, with no new date announced.
