White House threatens to pull support for crypto bill after Coinbase standoff: Report

The White House is reportedly threatening to withdraw crucial political support for pending bipartisan cryptocurrency legislation, sources familiar with the matter confirmed late Tuesday. The move is said to be a direct consequence of a recent standoff with major crypto firms, most notably the U.S.’s largest crypto exchange, Coinbase.

The friction centers on disagreements over the scope of regulatory oversight and consumer protection measures within proposed bills, such as the Financial Innovation and Technology for the 21st Century Act (FIT21) and stablecoin regulatory frameworks. Administration officials reportedly view Coinbase’s aggressive lobbying and ongoing legal challenges against the Securities and Exchange Commission (SEC) as an act of resistance against necessary market safeguards.

While the administration had previously signaled a tentative willingness to engage with Congress on establishing comprehensive crypto market structure, the latest internal reports indicate growing frustration that the industry is prioritizing deregulation over stability. A source stated anonymously that the White House feels the industry is failing to negotiate in good faith regarding foundational investor protections.

This potential withdrawal of support introduces significant uncertainty into the legislative process. Without the backing of the Biden administration, the path for any major digital asset regulation to pass through the Senate before the end of the current session becomes exceedingly difficult, effectively freezing efforts to provide much-needed clarity to the burgeoning sector.

Source: White House threatens to pull support for crypto bill after Coinbase standoff: Report