Coinbase CEO Brian Armstrong has expressed optimism that US senators are moving closer to advancing key cryptocurrency market structure legislation by Thanksgiving. He suggested that there is now far more agreement across both sides of the aisle than 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” following the passage of the GENIUS Act earlier this year. The Act set federal standards for stablecoin reserves, transparency, and consumer protections.
“The big banks are coming for their cash grab, trying to block that,” Armstrong said. “We’re not going to let them re-litigate that.”
### Banking Lobby Pushback on the GENIUS Act
Armstrong’s criticism of the banking industry comes amid strong opposition from many lobbyists to 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, this 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 stated.
As reported by Cointelegraph, banking lobbies have grown increasingly concerned that stablecoins could threaten their traditional business model, which 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.
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**Related:** Boom in RWA Tokenization Expected After Passing of GENIUS Act
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