Coinbase’s CEO has publicly accused major banks of trying to stifle parts of the law aimed at deregulation of stablecoins and other crypto products. Brian Armstrong said banks are pushing policies that would make the law ineffective for crypto companies, a case that has escalated into a political controversy that now involves the White House.
Banks and Crypto Firms Clash
US President Donald Trump’s comments this week weighed in on that battle. He used his social media feed to complain that banking interests are trying to “kill” the GENIUS Act, and warned that tougher restrictions could stifle crypto firms overseas. According to a Bloomberg report, the disputes center on the so-called yield rules – whether stablecoin holders should 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 have backfired after the Senate failed to move forward. The chairman of the Senate Banking Committee has suspended consideration after industry pushback and complex negotiations over who gets control. That delay created space for sharp messages from both sides: crypto leaders warning of lost competition, and banks pushing for protections they say are necessary to limit risk.
Industry Pushback And Stakes
The back-and-out increased significantly after the exchange CEO’s speech. Coinbase has not retracted the claim that banks want to create regulations for their own profit. Reports indicate that other crypto companies have privately expressed similar complaints. Banks, on the other hand, argue that they want stricter supervision and limits on how digital asset firms can operate within the financial system.
Officials said the key point is retention and profitability: whether non-banking companies can offer deposit-like returns or whether that activity should remain within federally regulated banks. It was difficult to get short and clear answers. Negotiators sift through the technical language that will determine where risk resides and who applies the rules. That language is important for startups and large firms alike.
The Truth Social and Social Pressure
Trump raised the issue from his platform, grabbed people’s attention and turned a policy dispute into a political battle. Truth Social’s post cast the banks as a deterrent, and lawmakers on both sides of the aisle responded to the debate in phone calls and interviews. Reports note that propaganda makes it difficult for negotiators to adjust language silently without processing.
Bitcoin and other crypto firms have warned that unclear or onerous rules will squeeze talent and money elsewhere. Officials in the negotiating teams have yet to release a timetable for action. The data shows regulatory certainty can influence when businesses choose to support critical operations, and that factor now appears to be important in negotiations.
Featured image from Holmatrochart from TradingView
Planning process because bitcoinist focuses on delivering well-researched, accurate, and unbiased content. We maintain strict sourcing standards, and each page is diligently reviewed by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
