Coinbase CEO Challenges Banks Over Stablecoin Rewards
Coinbase CEO Brian Armstrong is taking a stand against banks, accusing them of trying to block stablecoin rewards. He believes they are protecting their monopoly. Armstrong is lobbying for the Market Structure Act, which aims to clarify crypto regulations.
On September 29, Armstrong posted on X while in Washington, D.C., lobbying lawmakers. He stated,”I’ve never been more bullish about clear rules for crypto. But banks are trying to undo your right to crypto rewards.”
The U.S. Senate is deliberating on the Digital asset Market Structure and Investor Protection Act. This legislation will determine which agency oversees crypto regulation and extend investor protections.
armstrong claims banks want to ban stablecoin rewards to maintain their monopoly. He argues that banks fear a capital flight from traditional banking to stablecoins. According to an April Treasury Department report, consumers might move $6.6 trillion out of banks into stablecoins.
Stablecoin rewards are a contentious issue. The GENIUS Act prohibits stablecoins from paying interest but allows rewards. Banks see this as a loophole.
Armstrong is ensuring the Senate knows that bailing out big banks at the expense of consumers is unacceptable. He is pushing for clear crypto rules and protecting consumer rights.
