Summary
- Key Trump administration officials have criticized Coinbase for withdrawing support from the crypto market structure bill.
- Meanwhile, World Liberty Financial, co-founded by President Trump, is backing Coinbase’s stance on the bill.
- Both World Liberty and Coinbase are focused on changes in legislation regarding stablecoin rewards.
As the crucial legislation for the crypto sector falters in Congress, the Trump administration is employing confrontational strategies to revive it, including indirect attacks on Coinbase, which distanced itself from the bill last month.
Recently, U.S. Treasury Secretary Scott Bessent has criticized crypto leaders like Coinbase’s CEO Brian Armstrong for suggesting that the bill should be rejected if its provisions are unfavorable. Bessent referred to these executives as “nihilists” and “recalcitrant actors,” even suggesting they relocate to El Salvador.
However, at a recent crypto event at Mar-a-Lago, members of the Trump family expressed their support for Armstrong’s political strategies. Zach Witkoff, CEO of World Liberty Financial, praised Armstrong during an interview, affirming their alignment on the issue.
Coinbase withdrew its support for the crypto bill due to changing language surrounding stablecoin rewards, which are crypto tokens linked to the U.S. dollar. The company currently provides yield on a widely used stablecoin, USDC, which it helped create, amidst pressures from traditional banks against such programs.
Coincidentally, World Liberty has launched its own stablecoin, USD1, integral to its future plans. The company has introduced an app that allows users to earn rewards on USD1, and intends to release a user-friendly app for swapping stablecoin holdings for fiat currencies.
As this legislative battle unfolds, World Liberty expresses strong support for Coinbase’s approach to the evolving market conditions. The Trump administration continues to prioritize this bill but is facing challenges due to the recent unexpected withdrawal of support from Coinbase.
