The Crypto Debate: Trump, Coinbase and a Family Firm

A new bill about how crypto markets work has caused big fights in Washington. Top officials from the Trump team have not been happy with Coinbase, a leading crypto company that recently said it would stop supporting the bill. They called Coinbase’s CEO, Brian Armstrong, a “nihilist” and even suggested he leave the U. S. At the same time, World Liberty Financial, a company co‑founded by President Trump, is cheering on Coinbase. Zach Witkoff, the CEO of World Liberty, told Armstrong at a Mar‑a‑Lago event that they “applaud” his approach to the bill. During a forum, Witkoff said World Liberty is “super aligned” with Coinbase’s ideas. The conflict centers on stablecoins, which are digital money tied to the U. S. dollar. Coinbase offers about a 4 % yield on its USDC stablecoin, a program that banks fear could make low‑interest bank accounts less attractive. World Liberty has its own stablecoin, USD1, and wants to let users earn rewards while using it in apps.The firm has launched a marketplace app that lets people lend, borrow and earn on USD1, and plans a Venmo‑style payment app. Because both companies want to keep stablecoin rewards legal, they back each other in Washington. World Liberty’s co‑founder Zak Folkman said the firm is “very much aligned” with Coinbase. Coinbase’s sudden withdrawal surprised Congress and the White House, leading Republican lawmakers to cancel a key Senate vote. The bill now hangs in the balance and may not pass before midterm elections slow Congress. Despite their frustration, Trump officials have still met with Coinbase and other crypto firms to try to reach an agreement on stablecoin yields. They believe the bill’s passage is a top priority for spring. If the market‑structure bill fails, stablecoin rewards may still be protected by last year’s GENIUS Act. World Liberty claims it operates independently from the White House, but its actions show a close connection to Washington politics.