In a major development, the US Securities and Exchange Commission has filed a joint stipulation with defendant Gemini Trust Company, LLC to terminate its long-running civil enforcement action with prejudice, effectively ending the three-year legal battle over the Gemini Earn crypto lending program.

SEC Vs Gemini

In January 2023, the SEC instituted one of the most controversial crypto-related lawsuits against Gemini Trust Company and its partner, Genesis Global Capital LLC, accusing both parties of illegally offering and selling unregistered securities through the Gemini Earn lending program, a financial product that operated between 2021 and 2022, which allowed customers to lend crypto for interest at 7.4% per annum. 

Following the FTX crash in 2022, Genesis, which had a significant financial exposure to the now-defunct crypto exchange, halted withdrawals on the Gemini Earn Program, effectively locking up $940 million in investor assets. Since then, a series of events has unfolded, including Genesis entering bankruptcy proceedings, and through that process, all Earn investors ultimately recovered 100 percent of their crypto assets in kind. In addition, Gemini has settled related matters with state and federal regulators, paying over $50 million in civil fines. 

In the joint stipulation filed this week, the SEC noted that its decision to seek dismissal “in the exercise of its discretion” took into account the full investor recovery and those regulatory settlements. The dismissal is with prejudice, preventing the SEC from re-filing the same claims, and represents the formal end of one of the most high-profile enforcement actions in the US crypto industry.

US Crypto Regulatory Turnaround

The dismissal of the Gemini case comes amid a broader recalibration of the US crypto regulatory approach under the Donald Trump administration. Several high-profile SEC actions against major platforms, involving Coinbase, Kraken, and Binance, have been dropped or paused, reflecting a shift from a forceful regulatory approach seen under the former chairman, Gary Gensler. 

At the same time, Congress and the White House continue to pursue pro-crypto legislative and policy initiatives. In July 2025, US President Donald Trump signed the GENIUS Act into law, a landmark bill establishing a comprehensive federal framework for stablecoins, aimed at boosting consumer protection and supporting broader adoption of digital assets.

Alongside the GENIUS Act, the highly anticipated Clarity Act, passed by the US House, aims to delineate regulatory responsibilities between agencies like the SEC and the Commodity Futures Trading Commission (CFTC) based on how digital assets function. The US Senate Agriculture Committee is set to observe a markup session of the bill on January 27, indicating steady progress despite recent concerning events, including public outrage by Coinbase founder Brian Armstrong and the Banking Committee’s continued postponement of its own hearing session.

Swiss banking giant UBS, with assets under management (AuM) of up to $7 trillion, is set to launch Bitcoin trading for some of its clients. This comes amid predictions that regulatory clarity and broader adoption could send the BTC price to as high as $200,000. 

UBS To Offer Bitcoin Trading To Some Wealth Clients

Bloomberg reported that UBS is planning to launch crypto trading for some of its wealth clients, starting with its private bank clients in Switzerland. The bank will reportedly begin by offering these clients the opportunity to invest in Bitcoin and Ethereum. At the same time, the crypto offering could further expand to clients in the Pacific-Asia region and the U.S.

The banking giant is currently in discussions with potential partners, and there is no clear timeline for when it could launch Bitcoin and Ethereum trading for clients. This move is said to be partly due to increased demand from wealth clients for crypto exposure. UBS also faces increased competition as other Wall Street giants are working to offer crypto trading. 

Morgan Stanley, in partnership with Zerohash, announced plans to launch crypto trading in the first half of this year, starting with Bitcoin, Ethereum, and Solana. The banking giant may soon also be able to offer its crypto products, as it has filed with the SEC to launch spot BTC, ETH, and SOL ETFs. 

Furthermore, JPMorgan, another of UBS’ competitors, is considering offering crypto trading to institutional clients, although this plan is still in the early stages. The bank already accepts Bitcoin and Ethereum as collateral from its clients. Last year, it also filed to offer BTC structured notes that will track the performance of the BlackRock Bitcoin ETF.

Can Bank’s Entry Trigger A BTC Rally To $200,000  

Kevin O’Leary predicted that Bitcoin could rally to between $150,000 and $200,000 this year, driven by the passage of the CLARITY Act. His prediction came just as White House Crypto Czar David Sacks said banks would fully enter crypto once the bill passes. As such, there is a possibility that BTC could reach this $200,000 psychological level in anticipation of the amount of new capital that could flow into BTC from these banks once the bill passes. 

BitMine’s Chairman, Tom Lee, also predicted during a CNBC interview that Bitcoin could reach between $200,000 and $250,000 this year, partly due to growing institutional adoption by Wall Street giants. Meanwhile, Binance founder Changpeng “CZ” Zhao said that a BTC rally to $200,000 is the “most obvious thing in the world” to him.

At the time of writing, the Bitcoin price is trading at around $89,600, up in the last 24 hours, according to data from CoinMarketCap.

Crypto analyst CryptoBull has highlighted targets that XRP could reach as it eyes double digits. The analyst is confident the altcoin could reach these targets, noting that current price action is mirroring the previous bull run. 

XRP Eyes Rally To $11 And Then $70

In an X post, Crypto Bull stated that the next impulse will take XRP to $11 and that the last wave will take the altcoin to $70. This came as he noted that the price pattern is mirroring the previous bull run, with the only difference being time, which he claimed makes sense, as the altcoin needs longer accumulation to reach higher prices. 

The analyst also indicated that it could take a year of accumulation for XRP to reach the $11 price target, meaning the last wave to $70 could take much longer. This prediction comes despite the current decline in the crypto market, with XRP trading below the psychological $2 price level.  

Despite the current bearish sentiment, crypto analyst CW has also declared that the XRP rally is about to begin and that the road to $21.5 is just the beginning. He noted that this is the Phase 4 peak while the first goal is for the altcoin to break its current all-time high (ATH). 

His accompanying chart showed that XRP could reach this $21 target by year-end. Meanwhile, there is the possibility of the altcoin rallying above $100 in the next Phase 1, which could happen next year. Crypto Pundit X Finance Bull recently highlighted the CLARITY Act and Trump’s tariffs as factors that could boost XRP’s demand and lead to higher prices for the altcoin. 

He expects the CLARITY Act to boost XRP’s demand, especially with Trump’s Crypto Czar predicting that more banks will enter into crypto once the bill passes. X Finance Bull predicts that XRP will be the token of choice for these banks based on his belief that Ripple will provide the rails to onboard them. 

XRP Breaking Out Of Multi-Year Triangle

Crypto analyst XForce revealed in an X post that XRP is breaking out of the largest 6+ year triangle in history, yet people are calling it a fakeout. He added that he is not a permabull or permanbear on the altcoin but that he follows trends and plays macro breakout patterns. His accompanying chart indicated that XRP was on the verge of a move to the upside, with a potential rally above $11.50. 

On the lower timeframe, crypto analyst Chart Nerd stated that XRP is currently breaking out of a two-week falling wedge structure. He noted that this is a bullish reversal pattern that could send the altcoin back to $2.40 in the short term, as this is where the wedge formed. He highlighted a key resistance between $2.13 and $2.20, which the altcoin will need to break above to confirm a reversal. 

At the time of writing, the XRP price is trading at around $1.92, up in the last 24 hours, according to data from CoinMarketCap.

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a joint event on the future of crypto oversight amid the Trump administration’s push to welcome the sector.

SEC-CFTC Push Joint Crypto Oversight

On Thursday, SEC Chairman Paul Atking and CFTC Chairman Michael Selig announced they will hold an event next week to discuss regulatory harmonization between the two sister agencies.

According to the announcement, the pro-industry chairmen will outline the efforts to work together and cooperate to “deliver on President Trump’s promise to make the United States the crypto capital of the world.”

The event will be hosted on January 27 at the CFTC headquarters and moderated by crypto journalist Eleanor Terret. Additionally, it will be open to the public and livestreamed on both agencies’ websites.

“For too long, market participants have been forced to navigate regulatory boundaries that are unclear in application and misaligned in design, based solely on legacy jurisdictional silos,” said SEC Chair Atkins and CFTC Chair Selig in a joint statement.

“This event will build on our broader harmonization efforts to ensure that innovation takes root on American soil, under American law, and in service of American investors, consumers, and economic leadership,” they added.

Last year, the SEC and CFTC began discussing their options for effectively collaborating on crypto regulations, as a clear framework for digital assets became a top priority for the agencies

As reported by Bitcoinist, the agencies explored reinstating the CFTC-SEC joint advisory committee to develop recommendations on ongoing issues, including efforts in regulatory coordination.

During a September joint roundtable between the two agencies, Atking declared that the era of regulatory fragmentation was ending and the age of harmonized, innovation-friendly crypto oversight was here:

 We are at a crossroads. If we follow the path of our predecessors, America risks ceding leadership in the next chapter of financial history. (…) This ends now (…) our two agencies must work in lockstep to transform dual regulation from a source of confusion into a source of strength. Together, we can offer the best of both worlds: the investor protections that have defined U.S. markets, combined with the innovation-friendly approach that will keep us at the frontier of financial technology throughout the 21st century.

The SEC’s Director of the Division of Trading and Markets, Jamie Selway, highlighted the SEC’s efforts to “further harmonize its rules with our sister regulator, the CFTC. In a January 22 speech, He affirmed that the Division will work shoulder-to-shoulder with the CFTC staff to ensure the US’s continued leadership in financial markets, following Atkins’ September directions.

Congress Regulatory Efforts Stall

The SEC and CFTC’s efforts to regulate the crypto market come as the US Congress struggles to establish a framework to oversee the sector. The Senate Banking Committee’s version of the market structure bill, which focuses on the SEC’s oversight, was delayed after multiple market participants criticized the bill’s draft.

Coinbase CEO Brian Armstrong shared his disappointment with the crypto legislation, withdrawing the company’s support last week. “This version would be materially worse than the current status quo. We’d rather have no bill than a bad bill,” he affirmed.

The Senate Agriculture Committee published its version of the CLARITY Act on Thursday, which mainly addresses the CFTC’s role and regulations, scheduling its markup session for January 27.

Eleanor Terret shared that the industry’s reaction has been mostly positive, “with stakeholders noting the bill’s close similarities to the House Agriculture Committee’s version of the Clarity Act.”

However, recent reports have warned that the Banking Committee’s crypto talks may not resume until later February or early March, as focus shifts to advancing affordable housing plans linked to President Trump’s priorities.

Crypto pundit X Finance Bull has explained how Donald Trump’s push to sign the crypto bill into law will boost demand for XRP. This follows White House Crypto Czar David Sack’s prediction about how banks will come into crypto once the CLARITY Act passes.

How Donald Trump’s Crypto Push Will Boost XRP’s Demand

In an X post, X Finance Bull shared a video in which Donald Trump’s crypto adviser, David Sacks, stated that banks will begin to adopt crypto once the crypto bill passes. The pundit noted that this means banks are already positioned, while Ripple has the stack and XRP has the liquidity, and the rails are in place. As such, he believes that the token will be the go-to crypto once these banks enter the crypto industry. 

X Finance Bull further mentioned that institutions that have been waiting over the past few years will return and announce their buys and use of XRP once Donald Trump signs the CLARITY Act into law. The pundit added that this moment resets who is early and that he never needed hype to hold the altcoin. “Research and study were always enough,” he said. 

X Finance Bull also questioned why market participants were panic-selling if banks are going all in once Donald Trump signs the crypto bill into law. The pundit’s statements come just as Ripple partnered with DXC to integrate the token and RLUSD into DXC’s Hogan core banking platform. 

The banking platform powers more than 300 million deposit accounts and over $5 trillion in deposits globally. As such, this is a major step in XRP’s adoption, as the partnership will integrate Ripple’s payment technology into large-scale banking environments.

Trump’s Tariff Move Will Also Boost The Altcoin

In another X post, X Finance Bull claimed that Donald Trump’s move with tariffs will also boost XRP’s demand.  He shared a video of how the U.S. president said that $18 trillion is flowing into the U.S. economy thanks to these tariffs. The pundit asserted that such money flows put pressure on banks, payroll systems, FX rails, and settlement speed. 

X Finance Bull further noted that this creates nonstop cross-border payments and liquidity needs, and this is where Ripple and XRP come in. He explained that while old rails leak money, Ripple and the altcoin were built to stop that. The pundit also alluded to Ripple executives meeting with Donald Trump and to the token being mentioned as part of the digital asset stockpile. He added that the CLARITY Act is next and that when rules lock in, the U.S. capital will need U.S. rails. 

At the time of writing, the XRP price is trading at around $1.92, down almost 2% in the last 24 hours, according to data from CoinMarketCap.

Following the unsuccessful markup of the long-awaited crypto market Structure bill (CLARITY Act) by the Senate Banking Committee, the Senate Agriculture Committee unveiled a new draft of the bill, with a scheduled markup session for Tuesday, January 27.

Stablecoin Yield Regulations Excluded

The Agriculture Committee’s version of the bill primarily addresses regulations under the Commodity Futures Trading Commission (CFTC), which would gain expanded authority to regulate cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). 

In contrast, the Senate Banking Committee’s section of the legislation focuses on the Securities and Exchange Commission (SEC) and its oversight. Notably, the Agriculture draft allocates $150 million to support the CFTC in the implementation of the proposed law.

Market expert James Murphy reviewed the key provisions of the new draft and expressed optimism about its implications. He highlighted that the bill creates a pathway for decentralized finance (DeFi) to avoid CFTC regulation, providing important protections for developers and specific service providers from liability. 

The Senate Agriculture Committee’s draft also excludes any regulations concerning stablecoin yields. This decision is significant, particularly as it addresses a critical provision that resulted in Coinbase (COIN) withdrawing its support for the Banking Committee’s version of the bill last week. 

The Banking Committee’s version of the CLARITY Act aims to limit the yield that stablecoin platforms can offer. While banks support this approach due to concerns about deposits potentially flowing out, crypto firms oppose it, arguing that such restrictions hinder competition. 

In contrast, the Agriculture Committee bill seeks to exempt stablecoins from CFTC regulations and relies on existing frameworks like the already passed stablecoin bill, or GENIUS Act, which mandates that stablecoins be fully backed.

Banking Committee Delays Crypto Bill’s Consideration

Senate Agriculture Chair John Boozman expressed appreciation for the collaborative efforts among lawmakers, particularly mentioning Senator Cory Booker and his staff for their contributions to consumer protections and CFTC authority. 

Despite the remaining differences in fundamental policy issues with its Democratic counterpart, the Committee’s chair emphasized the importance of moving the bill forward:

While it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better. It’s time we move this bill, and I look forward to the markup next week. 

But amid the broader cryptocurrency industry’s optimism surrounding the Agriculture Committee’s version of the market structure bill, the timeline for advancing the overall legislation remains uncertain. 

Bloomberg reported that the Senate Banking Committee is expected to delay consideration of its own portion of the bill, which could push discussions into late February or even March.

Featured image from OpenArt, chart from TradingView.com 

Now hanging in uncertainty, a big US cryptocurrency bill meant to set firmer ground for trading platforms, digital tokens and stablecoins lost its urgent status among Congress leaders. Attention shifting elsewhere, several influential senators paused work on it this week. Talks continue behind the scenes, aiming to fix unresolved parts before moving forward.

Lawmakers Focus On Housing

A handful of senators shift attention toward affordable housing plans linked to US President Donald Trump’s priorities. This move shrinks the chance for quick approval of the cryptocurrency legislation. Time runs short as political energy flows elsewhere.

Now the Banking Committee changed its timeline because of that move, so the expected vote on the bill got delayed for now. This puts a pause on efforts to build one clear system.

Big Industry Pushback

Out of nowhere, Coinbase stopped backing the plan. Its executives said the proposal might limit how stablecoins work, affecting services people rely on. That shift made them step away quietly. Right after, the group in charge paused things as well.

That shift laid bare growing tensions. Not every bank welcomed the rise of stablecoins. Rivalry looms when digital coin returns gain wider reach. Some financial players see threat in that growth.

Industry Response And Market Effects

Fear spread through trading floors. When talks got delayed, digital currencies started falling because people began questioning how much longer the arguing could last – alongside what kind of outcome might finally emerge.

Useful, perhaps, if waiting brings sharper rules. Still, dragging too long risks confusing banks more, leaving them unsure when to act.

Separate Tracks Emerge

Ahead of the curve, some lawmakers are eyeing a fresh approach where certain digital tokens fall under commodity rules. This version, quietly shared by the Senate Agriculture team, might follow its own path forward – timing unclear.

While others debate classification, this draft sidesteps the main gridlock and suggests an alternate route through regulatory terrain.

One path might still move forward, even if the Banking Committee’s proposal gets stuck. Still, running two versions at once brings up concerns – how will they merge them should both make it to debate?

Crypto Bill: What Might Happen Next

Few believe it’s dead, though time slips fast. Elections loom; attention wanders. Agreement must come soon, or nothing sticks.

Some members of Congress quietly say pushing into late February could kill chances, yet backers still meet out of view to adjust the proposal and pull in more votes.

Featured image from Unsplash, chart from TradingView

The Senate Agriculture Committee has released updated crypto market structure legislation and scheduled a markup for January 27 despite failing to secure Democratic backing, marking a potential shift toward partisan passage after months of bipartisan negotiations stalled.

Chairman John Boozman announced the legislative text yesterday, acknowledging that “differences remain on fundamental policy issues” while expressing gratitude for collaboration with Senator Cory Booker.

“Although it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better,” Boozman said, noting the markup will proceed at 3 p.m. in the Russell Senate Office Building.

BREAKING: Chairman @JohnBoozman releases updated market structure legislation ahead of January 27th markup. https://t.co/PB7O9FMJlZ pic.twitter.com/k7FuIBgEsk

— Senate Ag Committee Republicans (@SenateAgGOP) January 22, 2026

Legislative Path Narrows as Banking Panel Delays CLARITY Act

The Agriculture Committee’s decision to advance its Digital Commodity Intermediaries Act comes as the Senate Banking Committee postponed work on the parallel CLARITY Act until late February or March, according to sources.

The Banking panel has pivoted to housing legislation following President Trump’s push for affordability, with the president writing that he is taking “immediate steps” on the housing bill, which remains a priority and “American Dream.”

That delay followed Coinbase CEO Brian Armstrong’s public withdrawal of support over provisions he called “catastrophic,” including restrictions on tokenized equities and stablecoin yield.

Patrick Witt, White House Executive Director of the President’s Crypto Council, pushed back against Armstrong’s “no bill is better than a bad bill” stance, warning that delaying legislation risks future Democratic lawmakers writing “punitive legislation in the wake of a crisis, à la Dodd-Frank.”

“You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more,” Witt wrote.

Meanwhile, President Trump confirmed at Davos 2026 that he expects to sign crypto market structure legislation “very soon,” stating his administration is working to ensure “America remains the crypto capital of the world.“

JUST IN: President Trump says he hopes to sign the crypto market structure bill (CLARITY Act) soon. pic.twitter.com/2tQQqeefwP

— Altcoin Daily (@AltcoinDaily) January 21, 2026

Democratic opposition has intensified over ethics concerns, with Senator Adam Schiff demanding controls covering the White House and Senator Ruben Gallego calling ethics guardrails “a red line.”

Key Differences Between Competing Bills Shape Industry Response

The updated bill diverges from Banking’s CLARITY Act on several critical points, particularly regarding stablecoin yield, which has been the single biggest source of industry division.

CLARITY’s Section 404 explicitly prohibits digital asset service providers from paying interest or yield solely for holding payment stablecoins, though it permits “activity-based” rewards for transactions, loyalty programs, staking, or governance participation.

The new bill takes a fundamentally different approach by excluding “permitted payment stablecoins” from CFTC authority entirely, deferring regulation to frameworks like the GENIUS Act rather than setting specific yield rules.

Notably, the bill also explicitly classifies meme coins as digital commodities under CFTC jurisdiction, defining them as assets “inspired by internet memes, characters, or current events, where promoters seek to attract an enthusiastic community primarily for speculative purposes.“

CLARITY instead introduces “ancillary assets” concepts with exemptions for tokens that were principal assets of ETFs listed as of January 1, 2026.

On developer protections, the bill establishes an Office of the Digital Commodity Retail Advocate within the CFTC, while CLARITY creates a CFTC-SEC Micro-Innovation Sandbox for small firms.

Both protect software developers from regulation, though CLARITY’s Section 604 sparked warnings from Judiciary Committee leaders Chuck Grassley and Dick Durbin that it could “materially limit prosecutors’ ability to pursue financial crime cases.“

Banking Lobby Secures Stablecoin Restrictions Amid Industry Split

The stablecoin yield debate has exposed deep rifts between crypto platforms and traditional banks.

Bank of America CEO Brian Moynihan recently warned that as much as $6 trillion in deposits (roughly 30% to 35% of US commercial bank deposits) could migrate into stablecoins, while JPMorgan CFO Jeremy Barnum called yield-bearing stablecoins “a parallel banking system that includes something that looks a lot like a deposit that pays interest, without the associated safeguards.“

Galaxy Digital also warned that Banking’s draft could grant Treasury “Patriot Act–style” surveillance powers, including authority to freeze transactions for up to 30 days without court orders.

Given this increasing friction with banks, Armstrong said Coinbase is exploring compromises with them during Davos talks, stating, “we’re going to continue to work on the market structure legislation, and meet with some of the bank CEOs to figure out how we can make this a win-win.“

Coinbase CEO @brian_armstrong said he will take US crypto market structure talks to Davos, seeking a compromise with banks as legislation stalls in Washington.#Coinbase #CryptoMarketStructure https://t.co/GKvYIkcTSs

— Cryptonews.com (@cryptonews) January 20, 2026

Despite regulatory uncertainty, Clear Street analyst Owen Lau noted that “institutional use cases continue to expand even without a favorable Clarity Act,” pointing to continued blockchain adoption by major financial institutions.

The post US Senate Crypto Bill Heads to Markup Without Democrat Support appeared first on Cryptonews.

The US Senate Banking Committee has again postponed the work on the long-awaited landmark crypto market structure bill that could create a regulatory framework for digital assets.

Unnamed sources told Bloomberg that the crypto market structure legislation may be delayed by several weeks. The panel is likely to consider it in late February or March, they added.

Instead of focusing on the digital asset bill, the committee will pivot to housing legislation, following President Donald Trump’s recent push for affordability.

President Trump wrote that he is taking “immediate steps” on the housing bill, which remains a priority and “American Dream.”

Crypto Community Isn’t Happy With it

The Committee’s backburnering of the crypto bill has left the community in uncertainty, despite backers pushing for the urgent passage of the legislation.

Patrick Witt, White House Executive Director of the President’s Crypto Council, called for immediate implementation of the bill. He said that it is unrealistic to expect a multi-trillion-dollar industry to operate without a comprehensive regulatory framework.

The work on the crypto bill – called the CLARITY Act – stalled its planned markup after Coinbase CEO Brian Armstrong publicly withdrew support for the draft bill. Armstrong flagged several issues with the draft, including a de facto ban on tokenized equities.

However, the Bloomberg report noted that the Banking panel’s delay might not affect the Senate Agriculture Committee’s efforts on crypto.

The Agriculture Committee released its own version of that market structure bill, which the industry insiders fear might be a partisan bill lacking Democratic support.

“While differences remain on fundamental policy issues, this bill builds on our bipartisan discussion draft while incorporating input from stakeholders and represents months of work,” the Committee Chairman, John Boozman, clarified. Boozman postponed this legislation markup to late January.

The Agriculture Committee bill on crypto will need to get support from both Democrats and the Banking counterpart before it can continue further steps.

“I Hope to Sign Very Soon:” Donald Trump

President Trump confirmed that the crypto market structure bill will be signed “very soon.”

Speaking at the World Economic Forum at Davos 2026, he said that his administration is working to ensure that America remains the crypto capital of the world.

DAVOS2026: President Trump says he hopes to sign the crypto market structure legislation soon, “unlocking new pathways for Americans to reach financial freedom,” including #Bitcoin. pic.twitter.com/l1ZkTGX7xl

— Bitcoin.com News (@BitcoinNews) January 21, 2026

“Last year, I signed a landmark GENIUS Act into law, now Congress is working very hard on crypto market structure legislation… Bitcoin, all of them,” he spoke at Davos.

“I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom.”

The post US Crypto Market Structure Bill Further Delayed Until Late February or March – Report appeared first on Cryptonews.

Despite a mixed performance in the early weeks of 2026, Ripple CEO Brad Garlinghouse remains optimistic about the future of crypto markets, predicting new record highs for digital assets this year. 

Ripple CEO Optimistic About Long-Term XRP Potential

Speaking at the World Economic Forum in Davos, Switzerland, Garlinghouse noted that recent regulatory developments, including the landmark GENIUS Act, have “unlocked a lot of activity” in the sector.

When asked about crypto performance during an interview with CNBC, Garlinghouse confidently stated, “I’m very bullish, and yes, I’ll go on record as saying, I think we’ll see an all-time high.” 

He emphasized that major financial institutions are increasingly showing interest in cryptocurrencies, labeling this shift as a “massive sea change.” However, he believes that this development is not fully reflected in current market prices.

Despite his optimistic outlook, XRP, Ripple’s associated cryptocurrency, was trading at $1.88 and had experienced a notable 13% decline over the past week. The current market performance has led analysts to speculate about the possibility of a new bear market on the horizon. 

Nonetheless, he expressed confidence in the long-term potential of the XRP ecosystem, stating, “We are a very vested party in what goes on in the XRP ecosystem. In another five or 10 years, you’re going to see continued, very positive momentum.”

Garlinghouse Confident CLARITY Act Will Pass

Garlinghouse also anticipated that 2026 would see significant use cases for digital assets, mentioning that cryptocurrency exchange Binance is likely to re-enter the US market. 

He asserted that the GENIUS Act would facilitate the growth of stablecoins, potentially making operations like payroll more efficient. He believes cryptocurrencies are well-positioned for growth over the next decade.

Regarding the crypto market structure bill, or the CLARITY Act, a vital framework for regulating crypto, Garlinghouse voiced confidence that it will eventually succeed. “It’ll get done. We are as close as we have ever been,” he said. 

However, the proposed market structure bill has encountered significant challenges, particularly after key provisions came under scrutiny. Coinbase CEO Brian Armstrong withdrew support for the bill just 24 hours before an anticipated markup scheduled for January 15, leading to a postponement of the process.

Garlinghouse was taken aback by Armstrong’s strong opposition to the CLARITY Act, noting that “the rest of the industry, including exchanges that compete with Coinbase, were still supporting it.” 

The executive claimed that he still remains hopeful that industry leaders can navigate the current legislative impasse. “If we want the industry to continue to grow, we need things like the GENIUS Act and the CLARITY Act,” he affirmed.

Featured image from OpenArt, chart from TradingView.com 

As discussions surrounding the CLARITY Act—often referred to as the crypto market structure bill—continue in Washington, Kristin Smith, President of the Solana Policy Institute, has provided insights on the current status of the legislation and the organization’s top priorities. 

Solana Policy Institute’s Optimism For CLARITY Act 

One of the main priorities disclosed by Smith in a recent post on social media platform X (formerly Twitter), is the importance of protecting open-source developers in the legislative landscape.

Smith pointed out that the recent delay in the markup of the market structure bill last week after Coinbase’s withdrawal should be seen as a temporary setback. “Despite the delay, industry engagement remains robust, and there is clear bipartisan support to achieve durable regulatory clarity for market structure,” she noted.

The Senate Agriculture Committee is making advancements with its own draft of the legislation expected to be released on Wednesday, as earlier reported by Bitcoinist.

Smith also highlighted a shared objective: to create a framework that protects consumers, fosters innovation, and provides certainty for developers operating in the United States. A central tenet of this goal is the safeguarding of developers, which Smith argued is crucial for the success of the industry.

Smith Advocates For Developer Protections

The Solana Institute was founded to ensure that policymakers gain a comprehensive understanding of public blockchains and the protocols that underpin them. 

Smith articulated the critical role that open-source software plays within the crypto ecosystem, noting that developers around the world collaborate to produce software that anyone can inspect, use, or improve. “Openness is a strength—not a liability,” she asserted.

However, she raised concerns regarding the case against Roman Storm of Tornado Cash, indicating that it treats open-source innovation as something questionable. Smith warned that penalizing developers merely for writing and publishing open-source code endangers all those involved in such collaborative efforts. 

She emphasized the “chilling effect” that the prosecution could have on open-source developers, asserting that writing code is an expressive act protected by the First Amendment.

Smith called for clear policy that differentiates between bad actors and developers working on lawful, general-purpose tools. To bolster this cause, she encouraged supporters to draft letters expressing their stance in favor of open-source protections.

Roman Storm responded to Smith’s support, thanking her and the broader community for advocating for open-source principles. He remarked, “Criminalizing the act of writing and publishing code threatens not just one developer, but the foundations of digital security, privacy, and innovation.” 

At the time of writing, Solana’s native token, SOL, was trading at $130.33, mirroring the performance of the broader crypto market, dropping 11% in the weekly time frame.   

Featured image from DALL-E, chart from TradingView.com

A disagreement over US crypto regulation has spilled into public view, drawing the Cardano and XRP communities into an unexpected clash. The reason is the Digital Asset Market Clarity Act, a proposed bill intended to define how digital assets are regulated in the United States. 

The disagreement started after Charles Hoskinson openly criticized Brad Garlinghouse over his stance on the legislation, which led to pushback from prominent XRP community members. This comes just after reports have suggested growing frustration among lawmakers toward Coinbase over disagreements tied to the Clarity Act.

Hoskinson’s Criticism And Garlinghouse’s Position In Full Context

The tension came to the surface during a livestream in January 2026, where Hoskinson criticized Garlinghouse’s apparent support for advancing the Clarity Act despite its shortcomings. In the video, Hoskinson expressed skepticism about the bill’s direction and origins, remarking sarcastically, “And what we got is Elizabeth Warren wrote the bill, that’s leadership we can believe in.”

He went on to challenge the idea that passing an imperfect bill is preferable to continued uncertainty, pointing directly to the position of Ripple CEO Brad Garlinghouse. Hoskinson questioned whether handing regulatory power to the same institutions that previously sued, subpoenaed, or shut down crypto businesses could truly be considered progress.

Hoskinson’s remarks did not go unanswered. Vet, a notable XRP community member and XRP Ledger dUNL validator, reposted the video on X and criticized Hoskinson’s approach. Vet questioned why Hoskinson chose to publicly attack Garlinghouse instead of contributing constructively to the legislative process, writing, “How about focusing on helping shape the Clarity Bill instead of crashing out on Brad for no reason, Charles?”

Why The Clarity Act Matters To Both Communities

The Clarity Act is one of a few bills introduced during the current crypto-positive Trump administration that aims to bring structure to a regulatory environment that has been uncertain for years. The Clarity Act, in particular, was introduced to bring clarity around whether digital assets should be treated as securities or commodities and which agencies should oversee them. 

The bill represents a necessary step toward legal certainty and institutional participation. Supporters of XRP tend to see engagement with lawmakers as a practical route forward after years of legal battles. However, others like Charles Hoskinson are of a different notion. 

The Clarity Act is not without its issues. Sources close to the White House say the administration is considering pulling its support for the Clarity Act if Coinbase does not return to negotiations over stablecoin yield provisions. However, Coinbase CEO Brian Armstrong noted that Coinbase is actively working to find common ground with banks on yield-related issues.

A similar Act, called the Guiding and Establishing National Innovation for US Stablecoins Act, or the “GENIUS Act,” was signed into law in 2025 by President Donald Trump as part of efforts to create better regulatory clarity towards stablecoins in the United States. 

Interestingly, Ripple CEO Brad Garlinghouse was part of the crypto industry leaders that expressed support for the Genius Act after it was signed into law.

The Senate Banking Committee delayed the anticipated markup of its crypto market structure bill draft, prompting the Agriculture Committee to take action. The Agriculture Committee is set to release its own version of the bill’s draft today, just ahead of a crucial vote scheduled for next week.

Coinbase Faces Pressure To Negotiate Yield Deal

Eleanor Terret, a reporter with Crypto In America who has been closely monitoring congressional developments regarding cryptocurrency, reported that staffers from the Banking Committee hope a successful bipartisan agreement spearheaded by their counterparts in the Ag Committee could facilitate a smoother markup process.

The responsibility now largely falls on Coinbase—whose sudden withdrawal of support for the bill contributed to the halt in the markup process—to negotiate a deal with banking leaders on yield. At the same time, Binance and Ripple’s leadership have expressed support for the bill’s latest version during their appearance in Davos. 

Coinbase CEO Brian Armstrong expressed his apprehensions regarding the implications of the bill last week. He raised concerns that the legislation could prohibit tokenized equities, impose restrictions on decentralized finance (DeFi), and expand government access to financial data, potentially sacrificing individual privacy. 

The executive also cautioned that the bill could shift regulatory power from the Commodity Futures Trading Commission (CFTC) to the Securities and Exchange Commission (SEC), which may eliminate stablecoin rewards and hinder competition within the crypto sector.

President Trump Optimistic About Crypto Market Bill

Adding to the tension, Patrick Witt, Executive Director of the White House Crypto Council, took to social media late Tuesday to criticize Coinbase, warning that the delay in the market structure bill could invite stricter regulations under an administration less favorable to digital assets. 

Witt’s remarks seemed to corroborate reports from Crypto In America indicating that the White House is frustrated with Coinbase’s withdrawal, which has contributed to the legislative stall.

In a related note, President Donald Trump acknowledged the ongoing efforts surrounding the market structure legislation during his speech in Davos on Wednesday. 

He expressed hope that Congress would finalize the bill soon, stating, “Congress is working very hard on crypto market structure legislation, which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom.”

Featured image from OpenArt, chart from TradingView.com 

Bitcoin Magazine

Trump Vows to Sign Major Bitcoin Bill ‘Very Soon,’ Says U.S. Must Remain Crypto Capital

U.S. President Donald Trump said Wednesday that he wants to sign sweeping cryptocurrency market structure legislation “very soon,” arguing that digital assets are both a political priority and a strategic battleground in the United States’ economic competition with China.

Speaking during a wide-ranging address to world leaders and financial executives at the World Economic Forum in Davos, Switzerland, Trump framed his administration’s embrace of crypto as central to preserving U.S. leadership in financial innovation. 

His comments came as bitcoin surged above $90,000, extending gains amid optimism that clearer U.S. regulation could further legitimize the asset class.

“To unleash innovation and savings and financing, I’m also working to ensure America remains the crypto capital of the world,” Trump said.

He pointed to legislation he said he signed last year — the GENIUS Act, focused on stablecoins — as a foundational step toward that goal, while signaling that broader crypto market structure rules are now close to becoming law.

“Congress is working very hard on crypto market structure legislation — bitcoin, all of them — which I hope to sign very soon,” Trump said, adding that the effort would unlock new pathways for Americans to achieve what he described as “financial freedom.”

BREAKING: President Trump says he hopes to sign crypto bill soon. pic.twitter.com/kT4nwlPjDq

— Bitcoin Magazine (@BitcoinMagazine) January 21, 2026

Trump openly acknowledged the political calculus behind his support for crypto, saying it delivered “tremendous political support,” but stressed that geopolitical competition was the more important driver. 

“China wanted that market too,” he said. “It’s just like they want the AI. And we’ve got that market, I think, pretty well locked up.”

He also took aim at former President Joe Biden, claiming Democrats only softened their stance on crypto late in the 2024 election cycle after realizing how many voters cared about digital assets. 

“All of a sudden they loved it very much, but it was too late,” Trump said. “They blew it.”

Trump’s support for crypto legislation in the United States

Trump’s remarks come as U.S. lawmakers continue to negotiate a long-awaited framework to define how cryptocurrencies are regulated, including whether tokens fall under securities or commodities law and which agencies will oversee the sector. 

The Senate is currently advancing market structure legislation through multiple committees, though final language has yet to be released and markups keep getting delayed.

Political action committees backed by crypto firms spent hundreds of millions of dollars during the 2024 election cycle and are already mobilizing ahead of the 2026 midterms.

As Trump speaks, Bitcoin is trading at $89,942, down 1% over the past 24 hours on $60 billion in volume, leaving it about 1% below its seven-day high of $90,778 and 2% above its seven-day low of $87,902. 

This post Trump Vows to Sign Major Bitcoin Bill ‘Very Soon,’ Says U.S. Must Remain Crypto Capital first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Patrick Witt, White House Executive Director of the President’s Crypto Council, has advocated for the urgent passage of crypto market structure legislation.

Pushing back Coinbase CEO’s “no bill is better than a bad bill” line, Witt argues that it is a “privilege” to say that only because Donald Trump won in 2024 and installed a pro‑crypto administration.

He wrote on X on Wednesday that it is unrealistic to expect a multi-trillion-dollar industry to operate without a comprehensive regulatory framework.

“No bill is better than a bad bill.”

What a privilege it is to be able to say those words thanks to President Trump’s victory, and the pro-crypto administration he has assembled.

But let’s not kid ourselves. There *will* be a crypto market structure bill — it’s a question of…

— Patrick Witt (@patrickjwitt) January 21, 2026

Witt bluntly warned that if the bill fails to move ahead, a future Democratic Congress may write punitive legislation in the wake of a crisis, “à la Dodd‑Frank.”

“You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more,” he wrote.

Crypto Market Bill Delays – Disagreements Over Details

Patrick Witt’s comments follow the recent legislative slowdown, mainly due to disagreements over a specific section of the bill.

Notably, cryptocurrency exchange Coinbase withdrew its support for the legislation’s then-current version, labeling specific provisions as “problematic” and potentially harmful to innovation.

“This version would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft,” wrote Brian Armstrong in a post last week.

The current version of the bill prompted the Senate Banking Committee to postpone its markup hearing. Chairman Tim Scott noted that the Committee did not set a new date.

The delay leaves crypto industry waiting again for a clear regulatory path that could replace years of enforcement with a proper framework.

Besides, Senate Agriculture Committee Chairman John Boozman said that lawmakers need more time to finalize remaining policy details and ensure broad congressional support.

The post White House Digital Asset Advisor Calls for Immediate Crypto Market Structure Bill appeared first on Cryptonews.

A recent report from CNBC reveals that Binance’s co-CEO, Richard Teng, is contemplating a return to the US market after exiting in 2023 as part of a regulatory agreement that also resulted in the departure of the exchange’s former CEO, Changpeng Zhao (CZ). 

Ripple CEO Predicts Positive Impact From Binance’s Return

During an interview at the World Economic Forum in Davos on Tuesday, Teng emphasized that Binance is taking a “wait-and-see” stance regarding its reentry into the US, a market he considers “very important.”

In tandem with Teng’s comments, Brad Garlinghouse, Ripple’s CEO, shared his optimistic outlook for the world’s leading exchange comeback in a separate interview with CNBC. 

Garlinghouse remarked that the US market is significant and suggested that Binance had previously been a major player within it. “I think they’ll come back because they’re a capitalistic, innovative company that wants to solve larger market challenges and continue to grow,” he stated.

Not only that, but Garlinghouse also believes that Binance’s entry into the country’s cryptocurrency market could increase competition and ultimately attract more users. He noted: 

I think it will actually have the positive impact of bringing more people into the market, in part because it’ll reduce pricing. Today their pricing is lower on a global basis than what we see here in the U.S.

Teng, Garlinghouse Call For Support Of Key Crypto Bills

The discussion of Binance’s future in the US comes amidst a turbulent regulatory environment for cryptocurrencies. The recent cancellation of the crucial markup for the crypto market structure bill, known as the CLARITY Act, reflects ongoing challenges. 

Teng, a former regulator himself, weighed in on the state of US crypto regulations, asserting that “any regulation will be better than no regulation.” He explained that having regulatory clarity allows companies to navigate the framework effectively. 

“Once you have clarity, you can then start working around those rules,” Teng added, acknowledging that initial regulations may not be perfect but can be refined over time.

This backdrop of regulatory uncertainty is further complicated by recent developments in the industry. The CEO of Coinbase, Brian Armstrong, stepped back from supporting the crypto market structure bill just 24 hours before its markup, leading to its eventual suspension. 

Garlinghouse, who continues to support the bill in its latest form, was surprised by Armstrong’s “vehemence” against the CLARITY Act. He noted that “the rest of the industry, including exchanges that compete with Coinbase, were still supporting it.”

Looking ahead, Garlinghouse is hopeful that industry leaders will find a way to overcome the current impasse. “If we want the industry to continue to grow, we need things like the Genius Act and the Clarity Act,” he affirmed.

At the time of writing, Binance’s native token, Binance Coin (BNB), had dropped to $893.65, marking a 3.7% decline over the previous 24 hours. Ripple’s associated XRP token retraced towards $1.90, suffering even greater losses of 5.5% in the same time frame. 

Featured image from OpenArt, chart from TradingView.com 

Charles Hoskinson, the founder of Cardano, has publicly criticized Ripple CEO Brad Garlinghouse, who has endorsed the Digital Asset Market Clarity Act, a bill of the U.S. crypto market structure that has become controversial in the industry.

The controversy shows the continual gap between key crypto players on whether to have imperfect regulation instead of years of uncertainty, as the legislation waits longer for enactment due to deepening political and policy fears.

Hoskinson’s criticism surfaced during a live broadcast on X, where he questioned why Garlinghouse would back a bill that, in his view, risks handing regulatory authority back to agencies that have previously taken enforcement action against the industry.

Happy Sunday https://t.co/OqL64m7JEz

— Charles Hoskinson (@IOHK_Charles) January 18, 2026

Hoskinson said he was alarmed by the argument that any form of clarity is preferable to none, especially when the bill would empower the same institutions that have sued crypto companies in the past.

He framed the issue as one of trust, warning against conceding control to regulators who, he said, had already demonstrated hostility toward the sector.

Hoskinson Doubts CLARITY Act Can Survive This Quarter

The remarks were in response to Garlinghouse’s public endorsement of the CLARITY Act, which seeks to clarify the regulatory jurisdiction between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.

Garlinghouse has claimed that the bill is not flawless, but even with its passing, it would be an improvement in an industry that has been shrouded in legal ambiguity.

He has maintained that the crypto sector cannot afford to wait indefinitely for ideal legislation, particularly as lawmakers attempt to merge the Clarity Act with broader crypto market structure proposals.

Hoskinson’s objections go beyond the bill’s text and extend into the political environment surrounding it. He has blamed the Trump administration’s crypto policy leadership, particularly David Sacks, for undermining the bill’s early bipartisan momentum.

The @SECGov has sharply scaled back its enforcement actions against the cryptocurrency industry since @realDonaldTrump returned to office.#SEC #Trumphttps://t.co/NCTPm62pCR

— Cryptonews.com (@cryptonews) December 16, 2025

Hoskinson said that what once had a realistic chance of passage became politically compromised after President Trump’s involvement in launching meme coins, which he said turned regulatory discussions into partisan theater.

Hoskinson has gone as far as calling for Sacks to resign if he fails to guide the legislation through Congress, arguing that the window for passage is rapidly closing.

Cardano’s Charles Hoskinson says Trump’s crypto czar should resign if the CLARITY Act fails this quarter, criticizing U.S. crypto policy and regulatory failures.#CLARITYAct #Cardano https://t.co/8PnQun55TI

— Cryptonews.com (@cryptonews) January 12, 2026

The Cardano founder suggested that the likelihood of passage diminishes with each week of inaction, as competing priorities and political calculations take over in Washington.

Optimism Meets Resistance as Crypto Leaders Disagree on Clarity Bill

Not all industry leaders share Hoskinson’s pessimism, as Galaxy Digital CEO Mike Novogratz has said he believes the bill could still move forward within weeks, citing conversations with bipartisan lawmakers who remain engaged.

@galaxyhq warns the Senate crypto bill could give the U.S. Treasury “Patriot Act-style” surveillance powers over DeFi.#DeFi #Senate #Treasury https://t.co/0u8PR3ueM5

— Cryptonews.com (@cryptonews) January 14, 2026

At the same time, Coinbase CEO Brian Armstrong has distanced his company from the bill in its current form, adding another layer of complexity to the debate.

Armstrong confirmed that Coinbase withdrew its support over concerns that the latest draft could harm decentralized finance, restrict tokenized stock offerings, and prohibit stablecoin yield-sharing with users.

Though he refuted claims of a rift between Coinbase and the White House, Armstrong stated that the exchange would prefer that the bill be stalled rather than enacted with what he called harmful provisions to innovation and consumers.

@Coinbase CEO @brian_armstrong denied reports of a White House rift and said support for the CLARITY Act remains intact.#Coinbase #Cryptohttps://t.co/530Jslc9vX

— Cryptonews.com (@cryptonews) January 18, 2026

This position of Armstrong seems to correspond more with the concerns of Hoskinson than with those of Garlinghouse.

Lawmakers subsequently postponed a planned markup of the bill, showing that negotiations remain unresolved.

The debate has exposed broader tensions within the crypto sector, with some executives pushing for immediate regulatory clarity and others warning that rushed legislation could entrench restrictive rules for years.

The post Cardano’s Charles Hoskinson Blasts Ripple CEO Over ‘Sabotaged’ Clarity Act – Why? appeared first on Cryptonews.

Anthony Scaramucci has warned that a new US rule could hand the upper hand to Beijing. Reports say he believes a ban on paying yield to holders of dollar stablecoins will make dollar-linked digital rails less attractive than the digital yuan, which is moving toward paying interest on wallets.

Stablecoin Yield Ban And Dollar Competitiveness

Lawmakers in Congress are considering a bill that would reshape how digital assets are treated in the United States.

“The whole system is broken,” Scaramucci said on X, reacting to the Clarity Act’s restriction that blocks crypto exchanges and service providers in the US from paying yield to stablecoin holders.

According to the bill text, the proposed Clarity Act would bar certain kinds of yield or interest from being paid in connection with holding payment stablecoins, closing off a path some platforms use to offer rewards. This change is woven into a broader effort to define which digital tokens fall under which regulators.

The whole system is broken: The Banks do not want the competition from the stable coin issuers so they’re blocking the yield in the meantime the Chinese are issuing yield so what do you think the emerging countries will choose as a rail system the one with or without yield?

— Anthony Scaramucci (@Scaramucci) January 16, 2026

Banks And Exchanges Push Back

Reports note the move has split industry players. Some banks have warned that easy access to yield outside the banking system could drain deposits and change lending patterns.

At the same time, major crypto firms have voiced concern that a hard ban on yield will blunt the competitiveness of US dollar-based token services and could push global users toward alternatives that offer returns.

The debate has also strained support for the bill, with at least one high-profile exchange pulling its backing amid disagreement.

China’s Move To Pay Interest On e-CNY

China is already acting on a different path. Based on reports, commercial banks there will be allowed to pay interest on digital yuan holdings, a step meant to boost use of the state’s central bank digital currency.

The change went into effect around the start of this year and was presented as a way to encourage people and institutions to try the e-CNY more often.

Why This Matters For Smaller Economies

Money flows respond to yield. If a digital yuan offers returns while US dollar tokens cannot, some governments and firms in emerging markets might favor the payment rails that provide a financial edge.

That is the central point behind Scaramucci’s warning. It’s not just about finance and stablecoins; it is also about which systems gain traction for trade and cross-border payments.

Regulators now face a tough call. Reports say the choice is between strict limits that curb certain crypto yields and looser rules that could pressure bank deposits. Either route carries tradeoffs for stability, competition, and the global reach of the dollar.

Featured image from Unsplash, chart from TradingView

The Clarity Act is meant to give the US crypto market something it has lacked for years: a clear legal framework defining how digital assets are regulated, who oversees them, and how crypto companies can operate without constant regulatory uncertainty. That goal is now reportedly under pressure. 

Rumors are that a growing rift between the White House and Coinbase has raised the possibility that the administration could pull its support for the bill, putting one of the most closely watched pieces of crypto legislation at risk.

White House Frustration With Coinbase

According to reporting shared on X by Eleanor Terrett, sources close to the White House say the administration is considering pulling its support for the Clarity Act if Coinbase does not return to negotiations over stablecoin yield provisions. The issue centers on finding an arrangement that satisfies both crypto firms and traditional banks, particularly community banks that lawmakers see as a core stakeholder in the bill.

The source described Coinbase’s recent move as a unilateral action that caught the White House off guard, characterizing it as a rug pull against both the administration and the entire crypto industry. Officials reportedly pushed back against the idea that a single company could speak for the entire sector, stressing that the legislation reflects the policy agenda of US President Donald Trump and not the priorities of Coinbase CEO Brian Armstrong.

The Clarity Act is designed to define regulatory boundaries between US agencies and provide clearer rules for crypto markets, including how stablecoins and yield-bearing products are treated. 

Behind the dispute is a broader struggle between the White House and Coinbase over how crypto yield products should coexist with banking regulations. The White House’s position, as described by Terrett, is that reaching consensus with banks is essential for the bill to move forward.

Brian Armstrong Pushes Back On Rug Pull Claims

Coinbase is the largest crypto exchange and crypto custodian in the US, and this has naturally placed the company at the center of negotiations with the Trump administration. The scoop from Eleanor Terrett’s source is that White House officials think Coinbase CEO Brian Armstrong is not cooperating, as the bill is President Trump’s bill at the end of the day, not Armstrong’s.

However, the Coinbase CEO publicly rejected the notion that relations with the White House have soured. Responding directly to the report on X, Armstrong said the administration has been super constructive and confirmed that Coinbase is actively working to find common ground with banks on yield-related issues.

He added that the company is in the process of figuring out a deal with community banks, which is the important focus of the bill. Negotiations are currently open, and Armstrong noted that further details would be shared soon. 

Nonetheless, the standoff leaves the Clarity Act in a delicate position, as both sides attempt to shape the future of US crypto regulation without fracturing industry-wide support.

Featured image from Coinbase, chart from TradingView

Coinbase CEO Brian Armstrong has denied existing tension between the exchange and the White House over the content of the crypto market structure bill, i.e., the Digital Asset Market Clarity Act. This development follows a series of contentious moments surrounding the highly anticipated crypto market structure bill, beginning with Armstrong raising concerns over its provisions, which the crypto exchange would rather protest than support.

Crypto Market Bill Still On, Bank Negotiations Ongoing — Coinbase CEO

In a surprising move on January 15, Armstrong announced a public support withdrawal for the Clarity Act. The key crypto figure argued that the current content of proposed legislation was introducing a regulatory structure that would produce a net negative effect on the crypto industry. In particular, Armstrong raised alarm on opposition to stablecoin yield sharing, among other issues, before emphasizing the preference of “no bill than a bad bill.”

Following this event, journalist Eleanor Terrett reported that the White House became furious over Armstrong and Coinbase’s public criticism, which they described as a “rug pull”. In particular, she claimed the Donald Trump-led administration has threatened to withdraw support for the Clarity Act if the crypto exchange fails to return to the negotiation table with satisfactory solutions to the stablecoin yield dilemma. 

However, Armstrong has come out to counter this narrative of a potential fallout between Coinbase and the US government. Rather, Armstrong stated the crypto exchange has only directed to negotiate a deal with banks on how stablecoin yield sharing can fit with the present financial system. 

Notably, the US banking industry has pushed against allowing stablecoin operators to share yield with users, which they project could potentially cause a deposit flight even at interest rates as low as 5%. Armstrong states Coinbase is now exploring a potential deal that could benefit all entities involved following what he described as a “super constructive” meeting with the White House, thereby countering the report of escalating tensions.

Terrett Fires Back At Coinbase Boss

In another X post, Terrett hit back at the Coinbase CEO, claiming her initial report remains accurate. The renowned journalist explains that Armstrong’s rebuttal on supports her earlier claim that the White House has now hinged their support of the Clarity Act to Coinbase’s ability to secure a deal with the banks on the implementation of stablecoin yield sharing.

For context, the Clarity Act is designed to clearly define how digital assets are regulated in the United States and which agencies oversee different parts of the crypto market. It is a crucial piece of legislation, the approval of which is expected to improve investor protection and encourage adoption.