Coinbase CEO Brian Armstrong expressed optimism that U.S. senators are nearing a breakthrough in advancing key cryptocurrency market structure legislation by Thanksgiving. He indicated that there is now significantly more consensus between the two major political parties than there are points of disagreement.
Armstrong stated in a video shared on X that, despite the ongoing government shutdown, the Senate is actively engaged in efforts to pass crypto market structure legislation.
He elaborated that approximately 90% of the legislative framework has already been agreed upon. The remaining 10% of the focus is on complex issues such as decentralized finance (DeFi). Armstrong added that policymakers are seeking methods to foster innovation while simultaneously ensuring that centralized intermediaries, like Coinbase, are subject to regulation, rather than the underlying protocols.
Armstrong also highlighted the importance of "preserving stablecoin rewards" in the context of the GENIUS Act, which was passed earlier this year. This act established federal standards concerning stablecoin reserves, transparency, and consumer protections.
"The big banks are coming for their cash grab, trying to block that," he commented, emphasizing a determination to prevent further opposition. "We're not going to let them re-litigate that."
Banking Lobby Pushback on the GENIUS Act
Armstrong's critique of the banking industry's stance comes amid significant opposition to the GENIUS stablecoin act from many lobbyists. Their primary concern appears to be what they perceive as a loophole related to interest payments.
While the GENIUS Act explicitly prohibits stablecoin issuers from offering interest or yield, this restriction does not extend to exchanges, according to the Bank Policy Institute (BPI).
The BPI argues that by excluding crypto exchanges like Coinbase, "the requirements in the GENIUS Act can be easily evaded and undermined by allowing payment of interest indirectly to holders of stablecoins."
As previously reported, banking lobbies have expressed growing apprehension that stablecoins could pose a threat to their business model, which currently offers depositors minimal interest. Austin Campbell, an industry insider and professor at New York University, noted that bankers are experiencing significant concern over the prospect of stablecoin holders earning yields.