Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Armstrong warns Senate: don’t bail out banks by banning crypto rewards

Armstrong warns Senate: don’t bail out banks by banning crypto rewards

Crypto.NewsCrypto.News2025/09/28 16:00
By:By David MarsanicEdited by Jayson Derrick

Coinbase CEO pushed back against the banks, claiming they are trying to block stablecoin rewards to protect their monopoly.

Summary
  • Coinbase CEO Brian Armstrong is lobbying for the Market Structure Act
  • He claims that banks want to ban stablecoin rewards to protect their monopoly
  • The U.S. Senate is currently deliberating on the Market Structure Act

Coinbase escalated its fight with TradFi, doubling down on its lobbying efforts and accusing banks of trying to protect their monopoly. On Monday, September 29, Coinbase CEO Brian Armstrong posted on X while in Washington, D.C., lobbying lawmakers on stablecoin regulation.

I've never been more bullish about clear rules for crypto. It’s obvious that market structure is a freight train that's left the station.

But that hasn't stopped the big banks from coming for another handout – this time paid by your crypto rewards. They want to undo your right… pic.twitter.com/hmPYmagDhj

— Brian Armstrong (@brian_armstrong) September 29, 2025

Armstrong spoke from Capitol Hill while the U.S. Senate deliberated on the Digital Asset Market Structure and Investor Protection Act. This piece of legislation , clarifying crypto rules beyond those covered by the GENIUS Act, will determine which agency is in charge of crypto regulation and extend investor protections.

“I’ve never been more bullish about clear rules for crypto. It’s obvious that market structure is a freight train that’s left the station,” said Coinbase CEO Brian Armstrong. “But that hasn’t stopped the big banks from coming for another handout – this time paid by your crypto rewards,” he added.

Banks want to ban stablecoin rewards: Armstrong

According to Armstrong, banks are trying to relitigate issues that were already settled with the GENIUS Act. Notably, he says the banking lobby is coming after stablecoin rewards.

“Banks want to ban rewards to maintain their monopoly, and we’re making sure the Senate knows bailing out the big banks at the expense of the American consumer is not ok,” Armstrong stated.

Stablecoin rewards are a contentious regulatory issue. Under the GENIUS Act, stablecoins are not allowed to pay interest. However, they are allowed to pay rewards, which some in the banking sector consider a loophole.

Notably, banks fear that stablecoin rewards could cause a capital flight from the banks. What is more, according to the April Treasury Department report , consumers might move as much as $6.6 trillion out of banks into stablecoins, potentially threatening the banks’ ability to lend.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Interview with VanEck Investment Manager: From an Institutional Perspective, Should You Buy BTC Now?

The support levels near $78,000 and $70,000 present a good entry opportunity.

深潮2025/11/28 07:23
Interview with VanEck Investment Manager: From an Institutional Perspective, Should You Buy BTC Now?

Macroeconomic Report: How Trump, the Federal Reserve, and Trade Sparked the Biggest Market Volatility in History

The deliberate devaluation of the US dollar, combined with extreme cross-border imbalances and excessive valuations, is brewing a volatility event.

深潮2025/11/28 07:22
Macroeconomic Report: How Trump, the Federal Reserve, and Trade Sparked the Biggest Market Volatility in History

Vitalik donated 256 ETH to two chat apps you've never heard of—what exactly is he betting on?

He made it clear: neither of these two applications is perfect, and there is still a long way to go to achieve true user experience and security.

深潮2025/11/28 07:22
Vitalik donated 256 ETH to two chat apps you've never heard of—what exactly is he betting on?

Prediction Market Supercycle

金色财经2025/11/28 07:15
Prediction Market Supercycle