The White House dismissed speculation that Coinbase is opposing a key stablecoin yield deal and could block the CLARITY Act, calling the rumors “uninformed FUD.” A recent report sparked claims that Coinbase CEO Brian Armstrong opposed the deal, which limits yield to account activity, though his alleged holdout was noted as less severe than previous opposition. The proposed yield restrictions have negatively impacted Circle stock, which fell 20% this week, while supporters of the bill urge its passage under the current political climate.
The White House has dismissed ongoing speculation that Coinbase opposed the latest stablecoin yield deal and could block the crypto bill, the CLARITY Act. Patrick Witt, the executive director of the President’s Council of Advisors for Digital Assets, discredited the claims as ‘uninformed FUD.’
He seemed confident the stablecoin yield deal made last week between the Senate and White House would reignite momentum for the CLARITY Act. The speculation was sparked by a Punchbowl News report stating Coinbase representatives told the Senate they could not support the deal. Reporter Brendan Pedersen clarified the holdout was not as strong as Brian Armstrong’s public opposition in January.
Some stablecoin yield supporters stood by the alleged Armstrong holdout, while others pleaded with him to allow the bill to pass. Tommy Shaughnessy, founder of crypto VC firm Delphi Ventures, implored Armstrong to reconsider his stance.
The recent deal narrowed stablecoin yield to account activity rather than passive interest earned on balances. There was no public statement from the industry on whether they accepted this yield compromise.
As of writing, Brian Armstrong had not made a public statement on the alleged opposition. Senator Cynthia Lummis stressed the bill can’t be postponed, underscoring the current pro-crypto regime as the best to advance clear rules.
Meanwhile, the limited stablecoin yield details in the latest CLARITY Act draft made traders turn bearish on Circle stock, CRCL. The stock fell 20% on Tuesday, from $127 to $98, before easing back to over $100 on Wednesday.
