White House threatens to withdraw support for crypto bill after Coinbase move, calling it a rug pull on the industry

Source: CryptoBriefing Original Title: White House threatens to withdraw support for crypto bill after Coinbase move, calling it a rug pull on the industry Original Link:

Overview

The Trump administration has threatened to completely withdraw its support for the crypto market structure legislation if Coinbase does not return to negotiations with a yield agreement acceptable to banks, according to sources close to the administration.

Key Developments

• The White House is considering pulling its support for the crypto market structure bill entirely if Coinbase does not come back to the table with a yield agreement that satisfies the banks and gets everyone to a deal
• Coinbase walked away from negotiations ahead of a key Senate Banking Committee markup on the bill earlier this week, a major setback given the exchange's prior involvement and public support for the legislation
• CEO Brian Armstrong publicly opposed certain provisions in the new draft in a statement released Wednesday

Coinbase's Concerns

After reviewing the Senate Banking draft text, Coinbase stated it cannot support the bill as written due to multiple issues, including:

• A de facto ban on tokenized equities
• DeFi prohibitions, giving the government unlimited access to financial data

Administration Response

According to sources, the White House is reportedly furious over Coinbase's "unilateral" move, which officials say occurred without prior notice. Administration officials are calling it a "rug pull" on both the administration and the broader crypto industry, viewing the exchange's withdrawal from negotiations as a betrayal of prior collaborative efforts on the legislation.