Coinbase Withdraws Support for US Crypto Market Structure Bill

Coinbase Withdraws Support for US Crypto Market Structure Bill

A source close to the Trump administration says White House backing could be withdrawn if Coinbase refuses to renegotiate bill terms amid legislative disputes.

Fact Check
The evidence strongly and consistently supports the statement. The primary source for the claim, a Bloomberg article, is provided, and its summary explicitly confirms that it "broke the story" and is "the primary source for the claim that Coinbase is warning it may reconsider its support for the market-structure bill." This directly validates both parts of the statement: the content of the warning and the outlet that reported it.This reporting is directly corroborated by another high-authority source, The Block, which also states that "Coinbase may reconsider support for US market structure bill." Furthermore, the underlying sentiment of the report is validated by primary source commentary from Coinbase's Chief Policy Officer, Faryar Shirzad. His public statements on X and his direct interview with CNBC confirm he is publicly discussing significant concerns with the bill's provisions, which aligns perfectly with the idea that the company's support is conditional and could be reconsidered. There are no contradictions among the high-relevance sources. The lower-authority sources are simply irrelevant to the specific claim and do not offer conflicting information.
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Summary

Coinbase’s withdrawal of support for the US crypto market structure bill has sparked tensions with the White House. Journalist Eleanor Terrett reported that a source close to the Trump administration indicated potential withdrawal of White House support for the bill unless Coinbase agrees to renegotiate. This follows Coinbase’s January 15 public rejection of the current draft prior to Senate revisions. CEO Brian Armstrong cited prohibitions on tokenized stocks, DeFi restrictions, and diminished CFTC oversight as key reasons for opposition, warning the bill may worsen the regulatory landscape.

Terms & Concepts
  • Market structure bill: A proposed law that defines how trading venues and market operations are organized and supervised.
  • Decentralized Finance (DeFi): Blockchain-based financial services that operate without traditional intermediaries, offering activities such as lending, trading, and investing.
  • CFTC: The Commodity Futures Trading Commission, a US regulatory agency overseeing derivatives markets, including futures and swaps.