White House Dismisses Coinbase Chatter as FUD, Says CLARITY Act Still Has Legs

The White House has swatted away the latest bout of crypto gossip, suggesting Coinbase is blocking the CLARITY Act is about as credible as a "trust me bro" on a meme coin launch. In a post on X, Patrick Witt, who heads the President’s Council of Advisors for Digital Assets, simply branded the whole affair 'uninformed FUD'—a classic degen dismissal.

Witt seemed bullish that the stablecoin yield compromise forged last week between the Senate and the White House would act like a shot of adrenaline for the bill, hopefully reviving its momentum before it gets lost in the legislative mempool.

This particular rumor sprouted from a Punchbowl News report, where journalist Brendan Pedersen claimed exchange reps told the Senate that Coinbase couldn't support the latest stablecoin yield proposal. Pedersen later walked it back a bit, clarifying this wasn't the same level of hardcore opposition as CEO Brian Armstrong's public rant back in January—more of a side-eye than a full-on rage-quit.

Naturally, the crypto commentariat split into factions: some stablecoin yield maxis pointed to the alleged holdout as proof of betrayal, while others practically begged Armstrong in public to just let the bill pass now and argue about the code later. Delphi Ventures founder Tommy Shaughnessy even took to the digital town square to urge a rethink, which in crypto terms is the equivalent of a very public DM.

The core of the deal essentially puts stablecoin yield in a regulatory straitjacket, limiting it to activity-based earnings and cutting out the passive interest paid through intermediaries—a clear victory for the legacy banking system, who probably popped champagne. As of now, the broader industry and Armstrong himself have remained radio silent on this new compromise, which is either strategic or they're all too busy watching charts.

Senator Cynthia Lummis issued a not-so-subtle warning that the bill can't afford any more delays, stressing that the current, relatively pro-crypto political alignment is the best shot the industry has at getting clear rules—basically saying this train might not stop at this station again.

Meanwhile, the draft's restrictive yield provisions acted like a sell signal for Circle's stock (CRCL), sending it into a 20% nosedive on Tuesday from $127 to $98, a move that would make any degen's portfolio weep. It did manage a slight recovery, clawing its way back above $100 on Wednesday, proving that in both crypto and stocks, nothing goes straight down—except maybe your sanity.