White House threatens to withdraw support for crypto bill after Coinbase move, calling it a rug pull on the industry

The White House stressed that one company does not represent the entire industry.

Key Takeaways

• The White House may withdraw support for the crypto bill if Coinbase does not resume negotiations with a yield agreement acceptable to banks.
• Coinbase's unsanctioned actions have angered the Trump administration, which sees them as a 'rug pull' against the administration and the crypto industry.

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The Trump administration has threatened to completely withdraw its support for the crypto market structure legislation if Coinbase does not return to negotiations with a yield agreement acceptable to banks, according to Crypto In America’s Eleanor Terrett.

🚨SCOOP: The White House is considering pulling its support for the crypto market structure bill entirely if @coinbase does not come back to the table with a yield agreement that satisfies the banks and gets everyone to a deal, a source close to the Trump administration tells me.…

— Eleanor Terrett (@EleanorTerrett) January 17, 2026

Coinbase walked away from negotiations ahead of a key Senate Banking Committee markup on the bill earlier this week, a major setback given the exchange’s prior involvement and public support for the legislation.

CEO Brian Armstrong publicly opposed certain provisions in the new draft in a statement released Wednesday.

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.

There are too many issues, including:

– A defacto ban on tokenized equities
– DeFi prohibitions, giving the government unlimited access to your financial…

— Brian Armstrong (@brian_armstrong) January 14, 2026

According to sources, the White House is reportedly furious over Coinbase’s “unilateral” move, which officials say occurred without prior notice, calling it a “rug pull” on both the administration and the industry.

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