Coinbase CEO Optimistic About Progress on U.S. Crypto Legislation

Coinbase CEO Brian Armstrong has expressed growing optimism that U.S. lawmakers are edging closer to passing major cryptocurrency market structure legislation before Thanksgiving. 

In a video posted on X, Armstrong said that despite the ongoing government shutdown, senators from both parties are working hard to finalize the framework, signaling rare bipartisan cooperation in Washington.

According to Armstrong, around 90% of the proposed legislation has already been agreed upon. The remaining 10%, he explained, focuses on more complex issues, particularly decentralized finance (DeFi). Lawmakers are reportedly seeking a balanced approach, one that promotes innovation while ensuring accountability for centralized intermediaries like Coinbase. 

“Centralized intermediaries should be regulated, not the protocols,” Armstrong emphasized. He also highlighted his support for a regulatory structure that distinguishes between traditional financial entities and open blockchain networks.

Stablecoins and the GENIUS Act

A key part of Armstrong’s message centered on protecting “stablecoin rewards” following the passage of the GENIUS Act earlier this year. The act established federal standards for stablecoin reserves, transparency, and consumer protections — marking one of the first major steps toward formal regulation of digital assets in the United States.

However, the Coinbase chief warned that large banks are attempting to undermine the legislation. “The big banks are coming for their cash grab, trying to block that,” Armstrong said. “We’re not going to let them re-litigate that.” His comments reflect growing tension between the crypto industry and traditional financial institutions, many of which have expressed opposition to the law.

Banking Lobby Pushback

Much of the pushback centers on what the Bank Policy Institute (BPI) describes as a “loophole” in the GENIUS Act. While the law prevents stablecoin issuers from offering interest or yield, it does not explicitly restrict exchanges like Coinbase from doing so. The BPI argues that this exemption could allow crypto firms to indirectly pay interest to stablecoin holders, potentially undermining the act’s intent.

Banks fear that this gap could make stablecoins an attractive alternative to traditional deposits, particularly since most banks currently offer minimal interest to customers. Austin Campbell, a finance professor at New York University, commented that many bankers are “panicking” over the idea of stablecoin holders earning competitive yields.

Despite the opposition, Armstrong remains confident that legislators will push the bill forward.