Trump Meets With Coinbase, Then Blasts Banks Over Crypto

"Trump posted on Truth Social that banks "need to make a good deal with the Crypto Industry" to advance digital asset legislation. He said a recently passed crypto law, the GENIUS Act, "is being threatened and undermined by the Banks, and that is unacceptable," echoing concerns raised by Coinbase."

"Banks warn that permitting such yield payments could draw deposits away from traditional bank accounts and threaten lending operations critical to the economy. Financial institutions are seeking a ban on stablecoin yield payments as part of broader crypto legislation pending in the Senate."

"Digital asset firms, including Coinbase, have pushed back, arguing that the restrictions would stifle competition and innovation. In January, Armstrong publicly opposed amendments to the crypto bill that would have restricted stablecoin rewards."

President Trump met privately with Coinbase CEO Brian Armstrong before publicly supporting the cryptocurrency industry against banks regarding digital asset legislation. Trump posted that banks must make a deal with the crypto industry to advance the GENIUS Act, stating that banking opposition is unacceptable. The underlying dispute centers on stablecoin yield payments—banks seek restrictions fearing deposits will shift from traditional accounts, while crypto firms like Coinbase argue such restrictions stifle innovation and competition. Armstrong previously opposed Senate amendments that would have restricted stablecoin rewards, highlighting the fundamental disagreement between financial institutions and digital asset companies over regulatory framework.

Read at Bitcoin Magazine