U.S. President Donald Trump quickly took to the Truth Social platform after a closed-door meeting with Coinbase CEO Brian Armstrong, urging traditional banks and the crypto industry to reach an agreement on legislation addressing the lagging market structure, and calling on Congress to pass the CLARITY Act as soon as possible. The sequence of these actions has drawn significant market attention: the president's public statement was not made in isolation, but rather immediately following a meeting with high-level stakeholders who would directly benefit from the legislation, indicating a clear policy inclination.
The core of the controversy centers around the issue of stablecoin yields. Crypto firms like Coinbase want to offer stablecoin holders an annual yield of about 3.5%, while commercial banks strongly oppose this, arguing that such yields effectively constitute unregulated interest payments, which could lead to a massive outflow of depositor funds from traditional banks, posing a systemic threat. Although banks emphasize that their stance is based on financial stability considerations, crypto firms argue that this is an attempt to suppress emerging competitors.
Notably, the language used by Trump in his public remarks—such as accusing banks of "threatening and undermining" the recently passed GENIUS Act—mirrors almost exactly the official statements from Coinbase. This high degree of consistency in language typically occurs only when the president deeply aligns with a particular stance, suggesting that this meeting may have substantially influenced his policy judgment.
Meanwhile, White House crypto advisor Patrick Harker is coordinating negotiations between both sides, attempting to push for a compromise after the informal deadline of March 1. Although consensus has yet to be reached, the market's reaction has been quite clear: Coinbase's stock price rose in pre-market trading following the announcement, with investors viewing the president's statement as a strong endorsement of the crypto industry's legislative agenda.
Trump has long viewed crypto finance as a key component of global competition, particularly emphasizing the need for the U.S. to surpass China at the forefront of technology. This macro narrative provides ideological support for his position and makes this action appear more like a part of a long-term strategy rather than a temporary political transaction.