Trump Meets Coinbase CEO as Crypto Bill Clash With Banks Intensifies

U.S. President Donald Trump recently held a private meeting with Coinbase CEO Brian Armstrong, just before publicly criticizing banks for allegedly trying to undermine the proposed GENIUS Act, according to a report confirmed by CoinDesk. The closed-door discussion highlights the growing political and financial tension surrounding cryptocurrency regulation and stablecoin legislation in the United States.

Following the meeting, Trump took to Truth Social to emphasize the urgency of passing digital asset market structure legislation. He urged lawmakers to move quickly on crypto regulation, saying the U.S. must act fast to maintain leadership in the digital asset sector. In his post, Trump argued that traditional banks are generating record profits while attempting to block reforms that could benefit the crypto industry and everyday investors. He warned that delays in regulatory clarity could push innovation and investment to countries such as China.

The meeting between Armstrong and Trump was first reported by Politico, citing sources familiar with the private discussion. Although the exact topics discussed remain unclear, the report noted that Trump later publicly supported Coinbase’s position in an ongoing lobbying dispute between crypto firms and major banks. The conflict has stalled progress on key digital asset legislation currently being considered in Congress.

At the center of the debate is the GENIUS Act, a bill aimed at creating clearer rules for stablecoins and the broader crypto market structure. The legislation has faced resistance from banking groups that argue stablecoins offering interest or yield could draw deposits away from traditional banks, potentially weakening their lending capacity. Cryptocurrency exchanges and industry advocates, however, argue that consumers should have the opportunity to earn rewards on stablecoin holdings under a transparent regulatory framework.

JPMorgan CEO Jamie Dimon also weighed in on the issue, suggesting that stablecoin issuers paying interest to users should face bank-level regulations. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, disagreed with Dimon’s stance. Witt argued that the main regulatory concern should be whether issuers lend or rehypothecate the underlying funds backing stablecoins. He pointed out that the GENIUS Act specifically prohibits such practices, emphasizing that stablecoins should not be treated as traditional bank deposits.

Meanwhile, the political developments and rising optimism around cryptocurrency regulation helped boost crypto-related stocks. Shares of Coinbase (COIN) surged above $200 on Wednesday, marking their highest level since late January, as crypto prices rallied across the broader market.