Despite gov’t shutdown, crypto market structure bill ‘90% there’ — Coinbase CEO

Coinbase CEO Brian Armstrong says he’s optimistic that US senators are moving closer to advancing key cryptocurrency market structure legislation by Thanksgiving, suggesting that there’s now far more agreement on both sides of the aisle than there are differences.

“Even though the government is shut down, the Senate is working hard on getting market structure legislation passed for crypto,” Armstrong said in a video posted on X.

According to Armstrong, roughly 90% of the legislative framework has already been agreed upon, with the remaining 10% focused on issues like decentralized finance (DeFi). He added that policymakers are looking for ways to protect innovation while ensuring that “centralized intermediaries, like Coinbase, should be regulated — not the protocols.”

Armstrong also underscored the importance of “preserving stablecoin rewards” in the wake of the GENIUS Act, passed earlier this year, which set federal standards for stablecoin reserves, transparency and consumer protections.

“The big banks are coming for their cash grab, trying to block that,” he said. “We’re not going to let them re-litigate that.”

Related: Boom in RWA tokenization expected after passing of GENIUS Act — Aptos exec

Banking lobby pushback on the GENIUS Act

Armstrong’s criticism of the banking industry comes as many lobbyists oppose the GENIUS stablecoin act, particularly over what they view as a loophole allowing interest payments.

While the GENIUS Act explicitly prohibits stablecoin issuers from offering interest or yield, that restriction does not apply to exchanges, according to the Bank Policy Institute (BPI).

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,” the BPI said. 

As Cointelegraph reported, banking lobbies have grown increasingly concerned that stablecoins could threaten their business model — one that currently offers depositors minimal interest. Industry insider and New York University professor Austin Campbell noted that bankers are “panicking” over the prospect of stablecoin holders earning yields.

Related: GENIUS Act blocks Big Tech, banks from dominating stablecoins: Circle exec