The White House is considering withdrawing its support for the crypto market structure bill after Coinbase’s move. A source close to the Trump administration revealed the administration’s fury over Coinbase’s decision to pull its backing for the Digital Asset Market Clarity Act, calling it a “rug pull” against the industry.

Coinbase CEO Brian Armstrong cited concerns with the Senate Banking Committee draft, including restrictions on decentralized finance (DeFi) and expanded government access to financial records. He warned the proposal could weaken the Commodity Futures Trading Commission and concentrate more power with the Securities and Exchange Commission, impacting user privacy.

Armstrong also raised concerns about stablecoins, warning that the bill could “kill rewards” on stablecoins. The proposal has sparked fears that it aims to protect banks from competition by limiting user access to high yields on stablecoins, potentially causing deposit outflows from traditional savings accounts.

The crypto community is divided over Coinbase’s stance on the bill, with some supporting the exchange’s position against what they see as efforts to prioritize incumbents over innovation. Others argue that Coinbase should not hold veto power over legislation with industry-wide implications, stating that Coinbase is just one exchange in the crypto space.

Read more at CoinTelegraph: White House May Drop Crypto Bill After Coinbase Withdrawal: Report