US President Donald Trump met privately with Coinbase chief executive Brian Armstrong before publicly criticising banks for blocking progress on US cryptocurrency legislation.
The meeting, first reported by Politico citing people familiar with the matter, came shortly before Trump posted on Truth Social urging banks to reach an agreement with the crypto industry.
“The Banks should not be trying to undercut The Genius Act, or hold The Clarity Act hostage,”
Trump wrote, adding that:
“Financial institutions need to make a good deal with the Crypto Industry.”
The policy dispute centres on whether crypto platforms should be allowed to offer yield rewards on stablecoins, digital tokens designed to maintain a fixed value of around one US dollar.
Banks argue that such yield programmes could attract deposits away from traditional accounts and weaken lending activity within the financial system.
Crypto companies including Coinbase have opposed restrictions, warning that limiting stablecoin rewards could reduce innovation and competitiveness in the sector.
The debate has stalled progress on the CLARITY Act, legislation intended to define whether digital assets fall under the oversight of the Securities and Exchange Commission or the Commodity Futures Trading Commission.