Coinbase CEO Armstrong Denies White House CLARITY Act Withdrawal Report

VADODARA, January 19, 2026 — Latest crypto news emerges as Coinbase CEO Brian Armstrong refutes claims of White House withdrawal from the CLARITY Act, creating immediate market structure uncertainty. According to Armstrong's Sunday X post, reports of administration abandonment are inaccurate, with the White House described as "constructive" in ongoing negotiations. This regulatory narrative clash occurs as Bitcoin trades at $95,457, testing key liquidity zones amid neutral market sentiment.

Market Context & Background

The CLARITY Act represents the most significant U.S. crypto market structure legislation since the 2024 FIT21 framework. Market structure suggests regulatory clarity acts as a liquidity catalyst for institutional capital flows. Historical cycles indicate that legislative uncertainty creates Fair Value Gaps (FVGs) in price action, particularly around key support/resistance levels. The current debate mirrors 2023's infrastructure bill negotiations, where similar narrative volatility preceded a 23% Bitcoin correction. Related developments include Scaramucci's warnings about stablecoin provisions and Fidelity's integration forecasts facing skepticism amid this regulatory fog.

What Happened?

On Sunday, January 18, 2026, Coinbase CEO Brian Armstrong posted on X that Eleanor Terrett's reporting was "inaccurate." According to Armstrong, the White House remains engaged and specifically requested Coinbase explore consensus through bank negotiations. He emphasized regional bank support as a "core component" of the legislation. Previously, Terrett—host of Crypto in America—cited an anonymous source claiming the White House viewed Coinbase's actions as betrayal. Terrett maintains her reporting accuracy despite Armstrong's rebuttal. The SEC's official regulatory calendar shows no scheduled CLARITY Act hearings this quarter, adding timeline uncertainty.

Technical Analysis & Price Action

Bitcoin currently tests the $95,457 level, representing a critical Order Block from January's consolidation phase. The 50-day moving average at $93,200 provides immediate support, while resistance clusters at $97,800 (previous weekly high). RSI sits at 54, indicating neutral momentum with slight bullish bias. Volume profile analysis shows thin liquidity between $94,000-$96,000, suggesting potential for rapid moves. Bullish invalidation level: $92,000 (61.8% Fibonacci retracement of December rally). Bearish invalidation level: $98,500 (year-to-date high). Market structure suggests a break above $97,800 could trigger a gamma squeeze toward six-figure resistance.

By The Numbers

Why It Matters

Institutional impact: Regulatory clarity directly affects custody solutions, banking partnerships, and ETF product expansions. The CLARITY Act's market structure provisions could unlock $50-100 billion in institutional capital currently sidelined. Retail impact: Clear rules reduce compliance uncertainty for exchanges and DeFi protocols. Market structure suggests delayed legislation extends the current "regulatory gray zone," maintaining higher volatility premiums. The Federal Reserve's stance on digital assets, as outlined in their 2025 financial stability report, emphasizes the need for coherent frameworks to prevent systemic risk.

Community Sentiment

Market analysts on X express divided views. Bulls highlight Armstrong's direct engagement as positive for negotiation progress. Bears point to Terrett's anonymous sourcing as evidence of underlying tensions. No major industry leaders have publicly endorsed either narrative, suggesting cautious positioning. Historical on-chain data indicates that similar regulatory uncertainty periods see reduced large wallet accumulation, confirmed by current UTXO age distribution showing increased short-term holder dominance.

Price Prediction / Future Outlook

Bullish case: Resolution of regulatory uncertainty through confirmed White House support triggers institutional FOMO. Bitcoin breaks $98,500 resistance, targeting $105,000 by Q2 2026. CLARITY Act passage accelerates banking integration, creating sustainable bid support above $100,000.

Bearish case: Protracted legislative delays create market structure vacuum. Bitcoin loses $92,000 Fibonacci support, testing $85,000 liquidity pool. Regulatory uncertainty suppresses institutional inflows, extending consolidation through 2026. EIP-4844 implementation on Ethereum could divert capital if Bitcoin narrative weakens.