Coinbase Confirms White House Still Supports CLARITY Act

The debate surrounding the CLARITY Act has intensified after Coinbase CEO Brian Armstrong denied claims that the White House plans to withdraw its support for the bill.

Armstrong said reports suggesting tension are false. He responded to journalist Eleanor Terrett, saying the White House has been “super constructive” and actively involved. He explained that the administration asked Coinbase to work with banks to reach a deal, and those discussions are still ongoing.

Armstrong also said Coinbase is helping develop policy ideas for the bill, including proposals that would support community banks.

Coinbase Chief Legal Officer Paul Grewal backed this view, saying the White House has been transparent and that Coinbase feels positive about the engagement. He added that protecting retail investors remains a top priority.

At the same time, criticism of banks has increased. TechCrunch founder Michael Arrington accused banks of trying to protect their advantage by limiting stablecoin yields. He said banks want to charge fees but pay little or no interest on customer deposits.

Arrington Blames Banks as Stablecoin Yield Debate Intensifies

According to Arrington, lawmakers allow these limits because banks have strong lobbying power. He argued this hurts everyday Americans and favors banks over consumers.

Arrington’s comments followed warnings from Bank of America CEO Brian Moynihan, who said yield-paying stablecoins could pull up to $6 trillion from bank deposits. Moynihan warned this could reduce bank liquidity, limit lending—especially to small and mid-sized businesses—and raise borrowing costs.

Armstrong agreed with Arrington’s view, saying banking lobbies are shaping the rules around crypto yields.

Despite disagreements, there is still optimism. Galaxy Digital CEO Mike Novogratz said the CLARITY Act could pass within two weeks based on recent talks with senators. He also said the bill doesn’t need to be perfect and that issues like stablecoin yield limits can be addressed later.