President Donald Trump met privately on Tuesday with Coinbase CEO Brian Armstrong before publicly backing the company’s position in an ongoing lobbying clash with banks that has derailed a major cryptocurrency bill, according to two people with knowledge of the matter who were granted anonymity to discuss a closed-door matter.
It is unclear what was discussed during the meeting, but it came just before Trump wrote on social media that banks “need to make a good deal with the Crypto Industry” in order to advance digital asset legislation that has stalled on Capitol Hill. He wrote that a recently adopted crypto law is “being threatened and undermined by the Banks, and that is unacceptable” — echoing Coinbase’s position.
A spokesperson for Coinbase declined to comment. The White House did not immediately respond to a request for comment.
The policy clash centers around whether crypto exchanges like Coinbase should be able to offer rewards programs that pay an annual percentage yield to customers who hold digital tokens known as stablecoins that are designed to maintain a value of $1. Wall Street groups are warning that allowing yield-like payments on stablecoins could lead customers to pull deposits from bank accounts and threaten lending that is critical to the economy.
Banks are pushing to ban any type of stablecoin yield payments as part of a sweeping crypto regulatory bill that is currently pending in the Senate. But a wide array of digital asset firms have fought back, and the rift helped derail the so-called crypto market structure legislation bill earlier this year. The legislation would establish new rules governing how crypto tokens are overseen by market regulators — a longtime lobbying goal for digital asset firms, which say they need “regulatory clarity” from Washington.
Coinbase, the largest U.S.-based crypto exchange, has played a key role in the spat. On the eve of a scheduled Senate Banking Committee markup in January, Armstrong came out against the most recent publicly released draft of the crypto bill. He warned in part against “Draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition.” The markup was later postponed, and the bill has remained stalled ever since.
Since then, White House officials have sought to mediate a compromise between the two sides. The White House hosted a series of meetings with representatives from the banking and crypto sectors, but significant differences remain between the two sides and no deal has emerged.
Coinbase has become a major player in Trump’s Washington, thanks in part to massive political spending that is already beginning to shake up the 2026 midterm elections. The exchange, which was co-founded by Armstrong, is a leading backer of a crypto super PAC group known as Fairshake that is armed with a war chest of more than $190 million. Coinbase also donated to Trump’s inaugural committee and to the president’s White House ballroom renovation effort.
In his post on Truth Social Tuesday, Trump included a line that Armstrong has uttered verbatim in interviews about the stablecoin yield fight: “Americans should earn more money on their money.” Separately, on Tuesday night, Trump also posted a picture of an X post from Armstrong praising him for delivering “on his campaign promise to make America the crypto capital of the world.”
The crypto “Industry cannot be taken from the People of America when it is so close to becoming truly successful,” Trump wrote in the initial post.
Declan Harty contributed to this report.
