Brian Armstrong Says Senate Nears Crypto Market Structure Legislation

Coinbase CEO Brian Armstrong says he’s optimistic that US senators are transferring nearer to advancing key cryptocurrency market construction laws by Thanksgiving, suggesting that there’s now way more settlement on either side of the aisle than there are variations.

“Though the federal government is shut down, the Senate is working laborious on getting market construction laws handed for crypto,” Armstrong stated in a video posted on X.

In line with Armstrong, roughly 90% of the legislative framework has already been agreed upon, with the remaining 10% targeted on points like decentralized finance (DeFi). He added that policymakers are on the lookout for methods to guard innovation whereas making certain that “centralized intermediaries, like Coinbase, must be regulated — not the protocols.”

Armstrong additionally underscored the significance of “preserving stablecoin rewards” within the wake of the GENIUS Act, handed earlier this yr, which set federal requirements for stablecoin reserves, transparency and shopper protections.

“The large banks are coming for his or her money seize, making an attempt to dam that,” he stated. “We’re not going to allow them to re-litigate that.”

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Banking foyer pushback on the GENIUS Act

Armstrong’s criticism of the banking trade comes as many lobbyists oppose the GENIUS stablecoin act, notably over what they view as a loophole permitting curiosity funds.

Whereas the GENIUS Act explicitly prohibits stablecoin issuers from providing curiosity or yield, that restriction doesn’t apply to exchanges, based on the Bank Policy Institute (BPI).

By excluding crypto exchanges like Coinbase, “the necessities within the GENIUS Act might be simply evaded and undermined by permitting fee of curiosity not directly to holders of stablecoins,” the BPI stated. 

As Cointelegraph reported, banking lobbies have grown more and more involved that stablecoins might threaten their enterprise mannequin — one which at present provides depositors minimal curiosity. Trade insider and New York College professor Austin Campbell famous that bankers are “panicking” over the prospect of stablecoin holders incomes yields.

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