Author: CoinDesk
Compiled by: TechFlow TechFlow
Original title: Coinbase CEO had just secretly met with Trump before he attacked banks.
TechFlow Dive: CoinDesk exclusively confirmed a key timeline: Coinbase CEO Armstrong first met privately with Trump, and then Trump publicly attacked banks on Truth Social for obstructing crypto legislation.
This clue directly reveals the lobbying path behind Trump's statement, and also makes the legislative game between the crypto industry and the banking industry clearer.
The full text is as follows:
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, first disclosed by Politico, took place before Trump posted on Truth Social that banks "need to make a good deal with the crypto industry" in an effort to push through stalled digital asset legislation on Capitol Hill.
The crypto market structure bill is stalled because banks warn that interest-bearing stablecoins could erode deposit and lending capacity, while crypto companies argue that the GENIUS bill's provision allowing consumers to earn rewards from stablecoin holdings is justified.
CoinDesk confirmed that US President Trump held a closed-door meeting with Coinbase CEO Brian Armstrong, and shortly thereafter Trump posted on Truth Social that banks were trying to undermine the GENIUS Act.
"The U.S. needs to complete market structure legislation as soon as possible. Americans should earn more from their own money," Trump wrote in a post on Tuesday. "The major banks are making historic profits, and we will not allow them to undermine our strong crypto agenda—all of this will go to China and other countries if we don't move forward with the CLARITY Act."
Politico first reported on Armstrong's meeting with Trump. Trump subsequently publicly endorsed Coinbase's position in its ongoing lobbying battle with banks, a struggle that has stalled a key crypto bill.
The media outlet cited "two sources familiar with the matter" as its sources, stating that they discussed the closed-door meeting anonymously. The report also noted that it is currently unclear what specifically the two discussed during their meeting.
However, the report reiterated that "the meeting took place shortly before Trump posted on social media that banks 'need to make a good deal with the crypto industry,'" which is a key juncture in pushing forward digital asset legislation stalled on Capitol Hill.
Neither the White House nor Coinbase responded to CoinDesk's requests for comment.
This market structure bill has been stalled since its scheduled debate and vote by the Senate Banking Committee. The core disagreement hindering its passage lies in the fact that banks argue stablecoin interest rates could affect bank deposits and consequently their lending capacity; while crypto exchage argue that users should have the right to receive rewards from stablecoin holdings, a right explicitly permitted by the GENIUS Act.
JPMorgan Chase CEO Jamie Dimon said on Tuesday that stablecoin issuers who pay interest on customer deposit balances should be regulated like banks. Patrick Witter, executive director of the President's Advisory Council on Digital Assets, countered, stating that "what really needs bank-like regulation is not the act of paying returns on balances themselves, but the lending or re-collateralization of the dollars that constitute the underlying balances." Witter also stated that the GENIUS Act "explicitly prohibits stablecoin issuers from engaging in the latter. Stablecoins ≠ deposits."
Crypto-related stocks surged on Wednesday along with a broad rally in the crypto market, with COIN breaking through $200, its highest price since the end of January.
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