Author: CoinDesk
Compiled by: Deep Tide TechFlow
Deep Tide Introduction: CoinDesk exclusively confirmed a key timeline: Coinbase CEO Armstrong first met privately with Trump, after which Trump publicly criticized banks on Truth Social for obstructing crypto legislation.
This clue directly reveals the lobbying path behind Trump's statement, making the legislative battle between the crypto industry and the banking sector clearer.
Full Text Below:
Key Points:
- Before publicly accusing banks of undermining the pro-crypto GENIUS Act and calling for the advancement of the CLARITY Act, Trump had a private meeting with Coinbase CEO Brian Armstrong.
- The meeting was first disclosed by Politico and occurred before Trump posted on Truth Social stating that banks "need to make a good deal with the crypto industry" to push forward stalled digital asset legislation on Capitol Hill.
- This crypto market structure bill has stalled because banks warn that interest-bearing stablecoins could erode deposits and lending capacity, while crypto companies argue that the GENIUS Act reasonably allows consumers to earn rewards from stablecoin holdings.
CoinDesk confirmed that U.S. President Trump held a closed-door meeting with Coinbase CEO Brian Armstrong, shortly after which Trump posted on Truth Social claiming that banks are trying to undermine the GENIUS Act.
"America needs to complete market structure legislation ASAP. Americans should make more money from their money," Trump wrote in a post. "Major banks are making historic profits, and we won’t let them destroy our strong crypto agenda—if we don’t advance the CLARITY Act, all of this will go to China and other countries."
Politico first reported the meeting between Armstrong and Trump. Since then, Trump has publicly supported Coinbase's stance in the "ongoing lobbying battle with banks," a struggle that has stalled a major crypto bill.
The media cited "two people familiar with the matter" as sources, who spoke anonymously to discuss the closed-door event. The report also noted that it remains unclear what exactly the two discussed during the meeting.
However, the report reiterated that "the meeting took place shortly before Trump posted on social media saying banks 'need to make a good deal with the crypto industry,'" which was a key moment in pushing forward the stalled digital asset legislation on Capitol Hill.
The White House and Coinbase did not respond to CoinDesk's requests for comment.
The market structure bill has been in limbo since it was originally scheduled for debate and vote in the Senate Banking Committee. The core disagreement blocking the bill's passage is: banks believe stablecoin interest rates could impact bank deposits, thereby affecting their lending capacity; crypto exchanges argue that users should have the right to earn rewards from stablecoin holdings, which the GENIUS Act explicitly allows.
JPMorgan Chase CEO Jamie Dimon said on Tuesday that stablecoin issuers paying interest on customer deposit balances should be regulated like banks. Patrick White, Executive Director of the Presidential Digital Asset Advisory Committee, countered this, stating, "What truly requires bank-like regulation is not the act of paying yields on balances itself, but the act of lending or rehypothecating the underlying dollars that constitute the balances." White also noted that the GENIUS Act "explicitly prohibits stablecoin issuers from engaging in the latter. Stablecoins ≠ deposits."
Crypto-related stocks surged significantly on Wednesday alongside a broad rally in the crypto market, with COIN breaking above $200, reaching its highest price since late January.
