Coinbase has pushed back against claims that the White House is hostile towards crypto policy discussions as negotiations over market structure legislation continue.
The dispute centres on talks involving banking yield, crypto regulation and the influence of large financial institutions.
Coinbase chief executive Brian Armstrong said discussions with the White House have been cooperative rather than adversarial.
Armstrong responded on X to reporting that suggested the administration could withdraw support for crypto market structure legislation.
“In general, love your posts, but this is not accurate,”
Brian Armstrong said.
“The White House has been super constructive here. They did ask us to see if we can go figure out a deal with the banks, which we’re currently working on,”
Brian Armstrong said.
Armstrong added that Coinbase is developing proposals aimed at supporting community banks through the proposed legislation.
“Actually, we’ve been cooking up some good ideas on how we can help the community banks specifically in this bill, since that’s what this is about…the community banks, right? More coming soon,”
Brian Armstrong said.
The comments followed reporting by journalist Eleanor Terrett that White House support could depend on Coinbase reaching a yield agreement with banks.
Terrett said sources close to the Trump administration were frustrated by what they described as unilateral actions by Coinbase.
She maintained her reporting after Armstrong’s response, insisting it accurately reflected the administration’s position.
“My reporting was airtight and accurate,”
Eleanor Terrett said.
Terrett added that White House backing now appears conditional on Coinbase securing an acceptable deal with banks.
Armstrong later shared an illustration referencing the parable “The Blind and the Elephant,” suggesting differing perspectives on the issue.
The exchange prompted wider industry debate over the role of banks in shaping crypto regulation.
Entrepreneur Mike Dudas criticised large banks for resisting competition from crypto firms.
“Big banks stalling crypto regulation. They want zero competition for deposits while paying you less than 0.1% on your hard-earned money in checking accounts,”
Mike Dudas said.
The debate highlights growing tensions between crypto companies, community banks and traditional financial institutions as US policymakers consider new rules.