Brian Armstrong Met Trump Before He Slammed Banks on Crypto

Brian Armstrong, the chief executive of Coinbase, held a private meeting with President Donald Trump just before the president launched a public attack on banks for undermining the GENIUS Act crypto bill, according to reports confirmed on Tuesday. The closed-door session came to light shortly before Trump posted a sharp message on Truth Social demanding that lawmakers prioritize crypto market structure legislation.

Trump Backs Coinbase in Bank Lobbying Fight

The private session between Brian Armstrong and Trump was first reported by Politico, citing two anonymous sources with knowledge of the closed-door matter. While it remains unclear what the two discussed, the meeting's timing proved telling: shortly afterward, the president publicly backed Coinbase's position in the company's ongoing lobbying clash with banks over stalled cryptocurrency legislation.

"The U.S. needs to get Market Structure done, ASAP. Americans should earn more money on their money," Trump wrote on Truth Social on Tuesday. He warned that "the Banks are hitting record profits" and pledged not to let them "undermine our powerful Crypto Agenda" that he said would otherwise "end up going to China, and other Countries." Trump insisted lawmakers must get the Clarity Act passed. Neither the White House nor Coinbase responded to requests for comment on the meeting.

The U.S. needs to get Market Structure done, ASAP. Americans should earn more money on their money.

— President Donald Trump, via Truth Social

Why Is the GENIUS Act Stalled?

The GENIUS Act is the stablecoin bill that stalled after Senate Banking Committee lawmakers were set to debate and vote on it. The central dispute revolves around stablecoin interest: banks argue that allowing stablecoin issuers to pay yield on customer balances could siphon deposits away from their institutions and weaken their lending capacity. Crypto exchanges counter that individuals should have the right to earn rewards on their stablecoin holdings, which they say the GENIUS Act explicitly permits.

Dimon Clashes With White House on Stablecoin Rules

JPMorgan CEO Jamie Dimon said on Tuesday that stablecoin issuers offering interest on customer balances should be regulated like banks. Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, pushed back firmly against the banking industry's position.

Witt argued that "the deceit here is that it is not the paying of yield on a balance per se that necessitates bank-like regulations, but rather the lending out or rehypothecation of the dollars that make up the underlying balance." He added that the GENIUS Act "explicitly forbids stablecoin issuers" from doing so, declaring that "stablecoins are not deposits." The exchange highlighted a sharp divide between the banking lobby and the Trump administration's digital asset advisory team.

The deceit here is that it is not the paying of yield on a balance per se that necessitates bank-like regulations, but rather the lending out or rehypothecation of the dollars that make up the underlying balance.

— Patrick Witt, Executive Director, President's Council of Advisors for Digital Assets

What Does This Mean for Crypto Stocks?

Trump's public backing triggered a rally in crypto-linked equities on Wednesday. Coinbase shares, trading under the ticker COIN, climbed above $200 to reach their highest price since late January amid a broader surge in digital asset markets.

With the president openly siding with crypto exchanges over Wall Street banks on the stablecoin yield question, the political dynamics surrounding the GENIUS Act could be shifting. However, lawmakers on the Senate Banking Committee still must reconcile the competing interests before the crypto bill can advance to a full vote.