According to a source close to the White House, the US administration is considering completely withdrawing its support for the bill aimed at regulating the cryptocurrency market.
This possibility stems from the fact that Coinbase has not returned to the negotiating table to reach a yield agreement that would satisfy the banks and reconcile all parties.
According to the source, the White House is highly critical of Coinbase’s “unilateral” move on Wednesday, which they say was made without prior notification. The move was described by the White House as “a rug pull against the White House and the rest of the industry,” as the administration believes that no single company can represent the entire crypto sector.
The same source argued that the ultimate owner of the process is the administration, not the companies, stating, “This is ultimately Donald Trump’s plan; not Brian Armstrong’s.”
US banks oppose the bill because they believe stablecoin yields will cause bank deposits to flow into stablecoins. Coinbase, however, rejects the bill, which is being amended to meet the banks’ demands.
*This is not investment advice.
