Coinbase CEO Confident in Progressing Crypto Legislation Despite Government Shutdown
Brian Armstrong emphasizes that lawmakers are making strides towards finalizing crucial crypto market structure legislation, focusing on innovation protection.
Despite the U.S. government shutdown, Coinbase’s CEO, Brian Armstrong, remains hopeful that the Senate will soon advance vital cryptocurrency market structure legislation by Thanksgiving. He posits that there’s a greater consensus among politicians across party lines than previously perceived.
Armstrong stated, “Even though the government is shut down, the Senate is working hard on getting market structure legislation passed for crypto.”
He explained that about 90% of the proposed regulations have been agreed upon, with outstanding concerns primarily related to DeFi (decentralized finance). Armstrong highlighted that legislators are cautious to foster innovation while also ensuring that regulated central intermediaries like Coinbase are distinguishable from the underlying protocols.
Furthermore, he emphasized the critical nature of maintaining stablecoin rewards after the introduction of the GENIUS Act, which established federal guidelines concerning stablecoin reserves and consumer safeguards earlier this year. “The big banks are coming for their cash grab, trying to block that,” Armstrong warned. “We’re not going to let them re-litigate that.”
Pushback from Banking Lobby on the GENIUS Act
Armstrong’s remarks about the banking sector align with significant resistance from many lobbyists to the GENIUS Act, which they claim harbors a loophole that permits interest payments. The Act prohibits stablecoin issuers from providing interest, yet exchanges are not bound by this restriction, allowing potential circumvention of the intended rules.
The Bank Policy Institute (BPI) issued a statement underscoring that the provisions of the GENIUS Act may be easily evaded by crypto exchanges, leading to concerns about potential abuses.
Cointelegraph previously reported on the growing anxiety among banks regarding the competition posed by stablecoins, which could disrupt traditional banking models that currently provide minimal returns to depositors. Professor Austin Campbell from NYU remarked on the banking industry’s escalating alarm over the potential for stablecoin holders to earn interests.
Related: Boom in RWA tokenization expected after passing of GENIUS Act — Aptos exec
