Banking Lobbies Stall Crypto Bill Over Stablecoin Rewards
Coinbase CEO Brian Armstrong accused banking trade groups of deliberately stalling negotiations on a U.S. crypto market structure bill, citing their opposition to stablecoin rewards as the main roadblock. Speaking at the World Liberty Forum in Palm Beach, Florida, on February 18, Armstrong argued that these lobbying bodies are adopting a "zero-sum mindset" that is hindering progress. The comments come after the Digital Asset Market Clarity Act failed to advance in the Senate Banking Committee last month, pushing negotiations into a series of White House-hosted meetings between the crypto and banking industries.
For whatever reason, sometimes incumbent industries have trade groups, and they view the world with a zero-sum mindset [where they believe] for the banks to win, crypto has to lose.
— Brian Armstrong, CEO of Coinbase.
Coinbase Supports Five of the World's Largest Banks
Armstrong drew a sharp distinction between the hardline stance of trade groups and the actions of individual financial institutions. He revealed that Coinbase is currently providing crypto infrastructure support for "five of the largest banks in the world," indicating that major players are actively integrating digital assets. He argued that individual banks, particularly small and medium-sized ones, are more concerned with losing deposits to larger banking competitors than to stablecoin issuers. This suggests the lobbying efforts may not fully represent the operational realities and strategic interests of all member banks, many of whom are already exploring crypto-focused roles and services.
Compromise Expected as White House Negotiations Continue
Despite the legislative stalemate, Armstrong expressed optimism that a compromise could be reached. The ongoing discussions, with the next meeting scheduled for this week, aim to find a middle ground. While Armstrong did not specify the potential terms of a deal, he suggested a revised bill might include new benefits for banks to secure their support. The outcome of these high-stakes negotiations will be critical in defining the regulatory landscape and the competitive dynamics between traditional finance and the burgeoning digital asset sector in the United States.
