TLDR
- Brian Armstrong met President Trump before Trump urged banks to reach a deal with crypto firms.
- Banks seek a ban on stablecoin yield rewards due to fears of deposit outflows.
- Coinbase opposes restrictions and warns banks want to block crypto competition.
- The Senate crypto market structure bill remains stalled over the yield dispute.
A Coinbase delegation led by CEO Brian Armstrong visited the White House on Tuesday. The visit occurred during a growing dispute between banks and crypto firms over stablecoin rewards.
The meeting happened shortly before President Donald Trump publicly urged banks to reach an agreement with the crypto industry. The dispute has slowed progress on a major digital asset bill in the Senate.
White House meeting comes during policy dispute
People familiar with the matter said Armstrong met privately with President Trump before the public remarks. The meeting was not officially confirmed by the White House. Coinbase also declined to comment on the discussions. However, the timing drew attention because Trump later posted messages supporting crypto industry concerns.
Trump wrote on Truth Social that banks must “make a good deal with the Crypto Industry.” He also warned that delays could harm the United States. The president said a recently adopted crypto law was “being threatened and undermined by the Banks.” His remarks echoed arguments often made by Coinbase leadership.
Armstrong has repeatedly said that Americans should benefit from earning returns on digital assets. Trump used similar language in his post, writing that “Americans should earn more money on their money.” The White House did not immediately respond to requests for comment about the meeting.
Stablecoin reward programs at center of the dispute
The disagreement focuses on whether crypto exchanges should offer yield rewards on stablecoins. Stablecoins are digital tokens designed to keep a value close to one U.S. dollar. Crypto platforms sometimes offer annual percentage yields to users who hold these tokens. The rewards are similar to interest programs offered by traditional financial platforms.
Bank groups argue that these programs could pull deposits away from bank accounts. They warn that large deposit shifts could weaken lending activity that supports the broader economy. Because of this concern, banking organizations have pushed lawmakers to ban stablecoin yield payments. They want the restriction included in a sweeping crypto regulatory bill.
Crypto companies oppose the proposal. They say yield rewards encourage innovation and provide new financial options for users. Armstrong criticized draft changes to the bill earlier this year. He warned that amendments could “kill rewards on stablecoins” and allow banks to block competition. Soon after his remarks, a planned Senate Banking Committee markup was postponed. The bill has remained stalled since that time.
Senate legislation faces continued gridlock
The pending legislation aims to create a federal structure for digital asset markets. It would also clarify how the Securities and Exchange Commission and the Commodity Futures Trading Commission oversee crypto tokens. The bill includes major proposals such as the CLARITY Act and the GENIUS Act. However, the stablecoin reward issue has become a major obstacle.
Administration officials have attempted to broker a compromise between banks and crypto companies. Several meetings between the two sectors have taken place at the White House. Despite these efforts, the sides remain divided. No agreement has yet been announced. Coinbase has also increased its political activity in Washington. The company supports the Fairshake super PAC, which holds more than $190 million.
The exchange also contributed to Trump’s inaugural committee and to a White House renovation fund. Armstrong recently said talks may still produce an agreement. He told an audience at the World Liberty Forum that a “win-win-win” outcome remains possible for banks, crypto firms, and consumers. For now, the legislation remains stalled while negotiations continue in Washington.
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