U.S. President Donald Trump held a closed-door meeting with Coinbase CEO Brian Armstrong. Almost immediately after, Trump publicly accused banks of trying to stall the advancement of a key stablecoin law and called for faster adoption of comprehensive digital asset market regulation. The fact of the meeting was previously reported by American media. CoinDesk confirmed that it did indeed take place.
The Meeting Took Place Before Trump’s Sharp Statements
According to sources, Trump and Armstrong’s conversation happened shortly before the president’s post on Truth Social. In it, Trump stated that it was time for banks to negotiate with the digital asset industry, otherwise the legislative agenda could stall.
In the same publication, the president specifically emphasized that the U.S. needs to finish work on the market structure law more quickly. He also linked the topic of stablecoins to yield for users, noting that Americans should earn more income on their funds.
The White House and Coinbase did not provide public comments on the content of the meeting. It was also not specified what specific issues were discussed.
Why Bills Are Stuck in Congress
There are two main areas at the center of the conflict. The first is related to the GENIUS Act, which sets basic rules for stablecoins. The second concerns a broader market structure bill, which should define the framework for exchanges, brokers, and other participants.
The advancement of these initiatives is stalling due to a controversial provision that worries the banking sector. Banks fear that yield-bearing stablecoins could displace deposits. If some funds leave banks, this could reduce the resource for lending and hit the profit model.
From the perspective of digital asset industry companies, a different logic is voiced. They insist that users should have the right to receive rewards for holding stablecoins. In their view, the GENIUS Act creates a safe framework for this and does not turn such tokens into bank deposits.
Banks Compare Yield-Bearing Stablecoins to Deposits
The topic was also publicly picked up by representatives of the largest banks. JPMorgan CEO Jamie Dimon stated that stablecoin issuers who pay yield on balances should be regulated under banking rules.
This reflects the general approach of the banking lobby. Their position is that yield-bearing stablecoins are similar in effect to deposit products, and therefore comparable requirements for capital, risks, and oversight should apply to them.
The Trump Administration Opposes This Approach
Patrick Witt, executive director of the Presidential Advisory Council on Digital Assets, publicly disputed the banks’ arguments. He focused on the mechanics, not the product’s label.
According to him, the key risk does not arise from the mere fact of paying yield, but from the issuer potentially using reserves aggressively. For example, issuing loans against these funds or reusing collateral. Witt noted that the GENIUS Act directly prohibits such practices for stablecoin issuers.
This line is politically important. It allows the administration to defend the thesis that stablecoins are not equivalent to deposits by nature, if reserves are protected and not involved in the credit multiplier.
The Market Responded With Growth in Crypto Stocks
Against the backdrop of news about the meeting and the president’s tough statements, shares of companies related to the digital asset industry rose. Coinbase stock gained and climbed above $200. These are the highest levels since the end of January.
This movement looks like a bet on accelerated regulation. The market perceives signals from the White House as an attempt to push through a compromise so that the bills can move forward again.
What’s Next?
The meeting between Trump and the Coinbase CEO itself does not change the legal reality. But it increases pressure on negotiations between banks, lawmakers, and the digital asset industry.
The decisive issue will be the wording. Congress will have to determine exactly how to allow yield on stablecoins without turning issuers into banks by default. The fate of the GENIUS Act in practice and the pace of adoption of the market structure law will depend on this.
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