- Trump says the U.S. must embrace crypto or risk losing technological leadership to China.
- White House hosted crypto executives to revive stalled talks on the CLARITY Act.
- Coinbase rejects bank claims that stablecoins threaten deposits and financial stability.
President Donald Trump on Tuesday publicly reaffirmed his support for cryptocurrencies, arguing that the United States risks falling behind China if it fails to embrace the technology.
“I’m a big crypto person,” Trump said during a White House meeting with crypto industry executives. “The reason I believe in crypto is if we don’t do it, China will do it.”
The remarks came as the administration hosted senior figures from the digital asset industry in an effort to revive stalled negotiations over the proposed “CLARITY Act,” legislation aimed at setting long-awaited rules for cryptocurrencies, stablecoins, and digital trading platforms.
Participants described the Oval Office meeting as constructive, saying it reflected a shift toward active White House involvement after months of legislative gridlock.
One question under debate is whether crypto platforms should be allowed to offer rewards on stablecoins, a move banks argue could draw deposits away from the traditional banking system.
Coinbase Pushes Back Against Bank Warnings
Paul Grewal, chief legal officer of Coinbase, said concerns raised by bank lobbyists are overstated.
“There is no evidence that crypto drains deposits from community banks,” Grewal said in an interview following the meeting. Instead, he argued that stablecoins strengthen the U.S. dollar by increasing global demand for dollar-backed assets.
Grewal said stablecoins are typically backed one-for-one by short-term U.S. Treasury, making them structurally different from bank deposits and, in some cases, less exposed to traditional banking risks.
Dollar Dominance and China
Industry representatives framed the legislation as a geopolitical issue as much as a financial one. Grewal warned that a failure to establish clear rules could open the door for alternatives such as a Chinese central bank digital currency to gain ground internationally.
“What stablecoins do is drive demand for U.S. dollars,” he said. “They help preserve the dollar’s role as the currency of choice in global trade.”
Regulation, Not Deregulation, the Goal
Crypto companies rejected criticism that they are seeking looser oversight than banks. Grewal said the industry is pushing for regulation that reflects how crypto products actually function, rather than forcing them into frameworks designed for traditional deposits and lending.
“This is not about avoiding regulation,” he said. “It’s about having rules that make sense, protect consumers, and encourage competition.”
The CLARITY Act, if passed, would introduce a formal supervisory structure for crypto firms for the first time, while also granting banks new authorities to compete in digital asset markets.
Related: White House Says Crypto Market Structure Bill Cannot Target Trump
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