Coinbase CEO Optimistic About Cryptocurrency Legislation Progress Amid Government Shutdown
Amid a government shutdown, Coinbase's CEO Brian Armstrong expresses confidence in advancing the cryptocurrency market structure bill, emphasizing bipartisan support and the protection of innovation.
Coinbase CEO Brian Armstrong is optimistic about progress in advancing crucial cryptocurrency legislation, stating that US senators are working diligently despite the government shutdown. He believes bipartisan agreement is growing, aiming for progress by Thanksgiving.
“Even though the government is shut down, the Senate is working hard on getting market structure legislation passed for crypto,” Armstrong noted in a video posted on X.
He mentioned that around 90% of the legislative framework is already agreed upon, with the remaining issues largely surrounding decentralized finance (DeFi). He emphasized that lawmakers are focused on ensuring that both the integrity of innovation is preserved and that centralized entities like Coinbase are regulated, rather than the underlying protocols.
Armstrong also highlighted the significance of maintaining stablecoin rewards post the GENIUS Act, which established federal standards regarding stablecoin reserves and consumer protections.
“The big banks are coming for their cash grab, trying to block that,” he asserted. “We’re not going to let them re-litigate that.”
Banking Lobby Opposition to the GENIUS Act
Armstrong’s remarks come amid criticism of the banking sector, particularly regarding the GENIUS Act. Many lobbyists oppose the act, viewing it as having a loophole permitting interest payments.
While the GENIUS Act prohibits stablecoin issuers from offering interest, this restriction does not apply to exchanges. The Bank Policy Institute (BPI) stated that excluding exchanges like Coinbase creates a pathway to indirectly provide interest payments to stablecoin holders, which could undermine the act’s intent.
As reported by Cointelegraph, the banking industry is increasingly anxious that stablecoins could disrupt their traditional business models, which often offer minimal interest rates to depositors. NYU’s Professor Austin Campbell described the banking sector as “panicking” due to apprehensions about stablecoin holders earning better yields.
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