Lede
Brian Armstrong, the CEO of Coinbase, has issued a public denial regarding reports of a major clash between the cryptocurrency exchange and the White House over the CLARITY Act. Armstrong characterized the administration’s approach as constructive, disputing claims that officials are on the verge of abandoning the crypto market structure bill. This legislative package is considered a cornerstone of digital asset regulatory policy in the United States. Despite Armstrong’s positive outlook, the bill reportedly stalled on Thursday after Coinbase and several other industry executives decided to withdraw their support. This shift in momentum occurred due to several concerns raised by industry leaders regarding the current state of the bill.
According to reports from Fox Business, the White House has begun considering the withdrawal of its own support for the bill following the move by Coinbase. Armstrong has stated that the industry is still working on ideas that could benefit community banks within the framework of the legislation. He indicated that the administration had asked the crypto sector to attempt to reach a deal with banking institutions, a process that is currently ongoing. However, the reported tension suggests a significant divide between the exchange’s leadership and administration officials, who may have been caught off guard by the industry’s recent tactical shift.
Context
The friction between the White House and the cryptocurrency industry intensified following reports that administration officials felt blindsided by Coinbase’s recent actions. Fox Business reporter Eleanor Terrett, citing sources familiar with the Trump administration, indicated that the White House was furious over the exchange’s decision to pull its backing for the Digital Asset Market Clarity Act. The move was described by some officials as a “rug pull” that affected both the administration and other stakeholders across the industry. This terminology highlights a deep sense of frustration within the government regarding the unilateral nature of the decision, which was reportedly made without advance notification to the White House.
The importance of this bill cannot be overstated, as it represents a primary vehicle for crypto regulatory policy. The administration has signaled that it might fully abandon the legislative effort unless Coinbase and other industry participants return to negotiations. A major sticking point in these discussions involves stablecoin yield provisions, which require a compromise to satisfy the interests of traditional banking institutions. Without a resolution to these issues, the bill remains stalled, leaving the future of US crypto market structure in a state of uncertainty. The reporting suggests that the administration is prepared to walk away if a consensus cannot be reached, emphasizing that the legislative path forward remains fragile.
Impact
Amid the regulatory standstill in Washington, institutional crypto platform Anchorage Digital is moving forward with plans for massive financial expansion. The company is exploring a capital raise estimated to be between $200 million and $400 million, while also eyeing a potential Initial Public Offering (IPO) that could occur next year. This financial push follows Anchorage’s long-term strategy to lead the institutional crypto market. The company achieved a major milestone in 2021 when the Anchorage Digital Bank National Association became the first crypto bank to receive a federal charter. This unique regulatory position has allowed the firm to develop specialized services that are now being scaled rapidly.
Representatives from Anchorage described 2025 as a year of scale for the platform. This period has been characterized by a series of strategic acquisitions, major institutional partnerships, and the launch of new business lines, most notably in stablecoin issuance. The firm’s ability to attract hundreds of millions of dollars in new capital during a period of legislative volatility suggests strong institutional confidence in its business model. By securing these funds, Anchorage intends to solidify its leadership role and expand its infrastructure to meet the needs of the growing digital asset market. The contrast between Anchorage’s growth and the legislative difficulties elsewhere underscores the bifurcated nature of the current crypto environment.
Outlook
The future trajectory for the crypto banking sector appears increasingly tied to the development and distribution of stablecoins. Anchorage CEO Nathan McCauley has previously signaled his intent to double the company’s stablecoin team to prepare for what he expects to be a significant boom in the usage of digital dollars. This focus is already manifesting in the form of high-profile partnerships. In September, Anchorage announced a collaboration with Tether, the issuer of the world’s largest stablecoin, USDT. Together, the companies plan to launch a USAT token specifically for the United States market, further integrating institutional crypto services with established stablecoin technology.
As the industry moves forward, the emphasis on stablecoin issuance and institutional partnerships is expected to grow. Anchorage’s spokesperson emphasized that the company’s recent acquisitions and new business lines, including its focus throughout 2025, are designed to cement its lead in the institutional sector. While the Digital Asset Market Clarity Act faces an uncertain path in Congress, the private sector is continuing to build out the infrastructure necessary for a digital economy. The planned expansion of stablecoin teams and the introduction of new tokens like USAT reflect a broader industry belief that digital dollars will remain a central component of financial services, regardless of the immediate outcome of legislative clashes between major exchanges and federal officials.
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