Citron Research also went after Coinbase earlier this week.
Popular journalist Eleanor Terrett reported today that the Trump administration is considering withdrawing its support for the cryptocurrency market structure bill entirely if Coinbase does not return for negotiations.
The exchange and its CEO blamed banks for intervening and pushing for changes that prevent or limit users from earning returns from stablecoins. However, other industry experts disagreed.
The White House threatens
Citing a source close to the Trump administration, Terrett said the White House hopes Coinbase will come back with a more suitable deal that “satisfies the banks and gets everyone to an agreement.”
He explained that the administration is said to be “furious” with the exchange’s “unilateral” decision on Wednesday as they reportedly failed to provide advance notice. Additionally, the White House reportedly called the move a “rug pull” against it and the rest of the crypto industry.
🚨SCOOP: The White House is considering completely withdrawing its support for the crypto market structure bill if @coinbase doesn’t come back to the table with a performance deal that satisfies the banks and gets everyone to an agreement, a source close to the Trump administration tells me…
-Eleanor Terrett (@EleanorTerrett) January 17, 2026
The source further stated that this is “President Trump’s bill at the end of the day, not Brian Armstrong’s.”
Recall that Coinbase withdrew its support earlier this week after blaming banks for implementing too many changes that tend to limit users from earning returns from stablecoins. CEO Armstrong outlined numerous problems with the current draft, including:
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– A de facto ban on tokenized stocks
– DeFi bans, which give the government unlimited access to your financial records and eliminate your right to privacy.
– Erosion of CFTC authority, stifling innovation and subordinating it to the SEC
– Draft amendments that would eliminate stablecoin rewards, allowing banks to ban their competition.
Undermining the bill?
Coinbase’s decision caused a lot of controversy within and outside the cryptocurrency industry. While some experts, like Ripple’s Brad Garlinghouse, stayed away, others, like Citron Research, squarely blamed Armstrong for undermining the bill.
They argued that Coinbase’s official reasoning shows fear of competition from tokenized securities firms as it seeks to benefit from regulatory clarity without opening the door to rivals.
The Senate Banking Committee postponed its scheduled review of the bill on January 15 and a new date has not yet been set.
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