White House Threatens to Drop Crypto Bill Support After Coinbase’s “Rug Pull”
The White House is weighing whether to withdraw its support for the digital asset market structure bill following what officials describe as a “unilateral” and destabilizing move by Coinbase, according to details shared by journalist Eleanor Terrett.
A source close to the Trump administration said officials were caught off guard when Coinbase abruptly pulled its support from the legislation on Wednesday, an action the administration claims it was not informed of beforehand. The internal reaction, the source said, has been nothing short of fury.
A “Rug Pull” That Jeopardizes Months of Negotiations
According to the source, White House officials view Coinbase’s decision as a “rug pull” against both the administration and the broader crypto industry.
The move is seen as jeopardizing months of delicate negotiations aimed at securing a unified deal on crypto market structure, talks that have involved lawmakers, industry leaders, and major banking stakeholders.
As a result, the administration is now considering a significant escalation: pulling its backing from the bill entirely unless Coinbase returns to the table and agrees to a yield framework acceptable to the banks involved in the discussions.
“One Company Doesn’t Speak for the Industry”
A key point of frustration within the administration is the perception that Coinbase acted alone in a way that weakened the industry’s collective position.
“The White House does not believe that one company speaks for the entire industry,” the source told Terrett, pointing to growing tension between policymakers and the U.S.’s largest crypto exchange.
The administration’s message is clear: it expects Coinbase to re-engage constructively, and quickly, if the bill is to remain on track.
“This Is President Trump’s Bill, Not Brian Armstrong’s”
In one of the sharpest lines shared with Terrett, the source made it clear that political ownership of the bill rests firmly with the White House, not with Coinbase’s leadership.
“This is President Trump’s bill at the end of the day, not Brian Armstrong’s,” the source said.
Coinbase has not publicly commented on the internal dispute as of publication, leaving open questions about whether it will return to negotiations or stand firm on its position.
If the White House withdraws support, the bill’s prospects could narrow significantly, potentially delaying or derailing the most ambitious federal effort yet to set clear rules for the crypto market.
For now, industry leaders are watching closely as one of the most consequential policy clashes in U.S. crypto history continues to unfold.
