The CEO of Coinbase publicly accused the big banks of trying to suppress parts of the law meant to clean up the rules for stablecoins and other crypto products. Brian Armstrong said banks are pushing conditions that make the law less beneficial to crypto companies, a charge that has expanded into a political rift that now involves the White House.
Banks and crypto companies clash
US President Donald Trump’s public statements this week added to the fray. He took to his social media to complain that banking interests are trying to “kill” the GENIUS Act and warned that heavy restrictions could push crypto companies overseas. According to a Bloomberg report, the dispute centers on so-called revenue rules — whether stablecoin holders will be allowed to earn interest and, if so, how banks will be involved.
— Rapid Response 47 (@RapidResponse47) March 3, 2026
Reports say the stalled talks go back to the Senate bill, which failed to move forward. The chairman of the Senate Banking Committee has stalled a review after the industry’s backlash and complex negotiations over who would gain regulatory oversight. The delay has created space for intense messaging from both sides: crypto executives are warning of lost competitiveness and banks are pressing for protections they say are needed to limit risk.
Industry returns and contributions
After the exchange director’s statement, the back and forth became louder. Coinbase did not deny the claim that banks want to shape the rules in their favor. Reports indicate that other crypto companies have privately voiced similar complaints. Banks, for their part, say they want stronger controls and restrictions on how digital asset companies can operate within the financial system.
Officials said the key issue is retention and revenue: whether non-bank firms can offer deposit returns or whether that activity should remain within federally regulated banks. Short and clear answers were hard to come by. Negotiators separate in technical language that defines where the risk lies and who enforces the rules. This language is important for both startups and large companies.
Truth Social and public pressure
Trump reinforced the issue in his platform, drawing public attention and turning a policy scandal into a full-scale political battle. The truth is that social media has created banks as a barrier, and lawmakers on both sides have started the debate in calls and interviews. Reports note that the rhetoric makes it more difficult for negotiators to quietly change language without scrutiny.
Bitcoin and other crypto companies have warned that unclear or burdensome regulations will push talent and capital to other territories. Officials of the negotiating teams have not published a timetable. The data shows that regulatory certainty can influence where businesses choose to base key operations, and that factor is now evident in the marketplace.
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