Coinbase CEO Brian Armstrong expressed optimism that US senators are nearing a breakthrough on cryptocurrency market structure legislation, with approximately 90% of the framework agreed upon despite the ongoing government shutdown. In a recent video shared on X, Armstrong highlighted that the remaining 10% of unresolved issues primarily involve decentralized finance (DeFi), which lawmakers are carefully addressing to balance regulation with innovation.
Armstrong emphasized the necessity of regulating centralized intermediaries like Coinbase, while allowing protocols themselves to remain unregulated. He also stressed the significance of protecting stablecoin rewards following the passage of the GENIUS Act earlier this year, which established federal standards for stablecoin reserves, transparency, and consumer protections. Armstrong criticized attempts by traditional banks to undermine these protections, referring to their efforts as a “cash grab.”
The banking industry’s resistance centers around concerns that the GENIUS Act’s restrictions on stablecoin issuers offering interest or yield do not extend to crypto exchanges, potentially allowing the rules to be circumvented by indirect interest payments. Lobby groups such as the Bank Policy Institute argue this loophole could weaken the legislation, while some industry experts note that bankers are increasingly alarmed by the competitive threat posed by yield-bearing stablecoins.
Armstrong’s comments underscore the ongoing legislative efforts to establish a clear regulatory framework for the crypto sector that safeguards innovation and consumer interests amid pushback from established financial institutions.
Source: Brian Armstrong
Read more: https://cointelegraph.com/news/brian-armstrong-senate-crypto-legislation-genius-act-stablecoin