Trump meets Coinbase CEO, criticizes banks over stalled crypto bill - Politico

Michael M. Santiago/Getty Images News

U.S. President Donald Trump met privately on Tuesday with Coinbase (COIN [https://seekingalpha.com/symbol/COIN]) CEO Brian Armstrong before later publicly backing the company’s stance in an ongoing lobbying dispute with banks that has stalled a major cryptocurrency bill, _Politico _reported, citing sources.

The meeting came ahead of Trump’s Truth Social post pushing for passage of the market-structure bill. Trump wrote that banks “need to make a good deal with the Crypto Industry” in order to advance digital asset legislation that has stalled on Capitol Hill. He wrote that a recently adopted crypto law (Genius Act) is “being threatened and undermined by the Banks, and that is unacceptable” — echoing Coinbase’s (COIN [https://seekingalpha.com/symbol/COIN]) position.

The dispute centers on whether crypto exchanges such as Coinbase (COIN [https://seekingalpha.com/symbol/COIN]) should be allowed to offer rewards programs that pay an annual percentage yield to customers who hold stablecoins. Crypto platforms such as Coinbase (COIN [https://seekingalpha.com/symbol/COIN]) have been offering [https://seekingalpha.com/news/4539283-banks-vs-crypto-battle-escalates-over-token-yields]rewards of up to ~3.5% annual yield on certain stablecoins. These rewards are significantly above typical bank deposit rates, averaging below 0.1% for a standard interest-bearing checking account.

Wall Street groups warn that permitting yield-like payments on stablecoins could encourage customers to shift deposits away from traditional bank accounts, potentially undermining lending that supports the broader economy.

Banking groups have flooded lawmakers with letters and calls, warning that high-yield crypto tokens could drain deposits and threaten lenders. Executives from JPMorgan Chase (JPM [https://seekingalpha.com/symbol/JPM]), Citigroup (C [https://seekingalpha.com/symbol/C]) have joined the push to regulate or limit crypto rewards to protect traditional banking, a WSJ report pointed out.

The proposed bill would set new rules for how crypto tokens are regulated by market authorities, something the digital asset industry has long sought, arguing it would provide much-needed “regulatory clarity” from Washington.

Coinbase (COIN [https://seekingalpha.com/symbol/COIN]), the largest U.S.-based crypto exchange, has been central to the dispute. On the eve of a scheduled Senate Banking Committee markup in January, CEO Brian Armstrong criticized the latest publicly released draft of the crypto bill, warning [https://seekingalpha.com/news/4539663-coinbases-armstrong-lobbies-lawmakers-to-preserve-stablecoin-rewards---report]that proposed amendments could eliminate rewards on stablecoins and allow banks to block competition. The markup was later postponed, and the legislation has remained stalled since.

MORE ON COINBASE

* Coinbase Global, Inc. (COIN) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript [https://seekingalpha.com/article/4878023-coinbase-global-inc-coin-presents-at-morgan-stanley-technology-media-and-telecom-conference]
* Coinbase: Betting On A Correction Is A Coin Toss [https://seekingalpha.com/article/4870620-coinbase-betting-on-a-correction-is-a-coin-toss]
* Coinbase: Take Advantage Of Extreme Fear To 'Buy' [https://seekingalpha.com/article/4870196-coinbase-take-advantage-of-extreme-fear-to-buy]
* Coinbase opens stock, ETF trading 24/5 alongside crypto to all U.S. customers [https://seekingalpha.com/news/4555931-coinbase-opens-stock-etf-trading-245-alongside-crypto-to-all-us-customers]
* Coinbase revenue from stablecoins could likely jump sevenfold - report [https://seekingalpha.com/news/4555591-coinbase-revenue-from-stablecoins-could-likely-jump-sevenfold---report]