Coinbase CEO Brian Armstrong says he’s optimistic that US senators are shifting nearer to advancing key cryptocurrency market construction laws by Thanksgiving, suggesting that there’s now way more settlement on each side of the aisle than there are variations.
“Despite the fact that the federal government is shut down, the Senate is working arduous on getting market construction laws handed for crypto,” Armstrong mentioned 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% centered on points like decentralized finance (DeFi). He added that policymakers are on the lookout for methods to guard innovation whereas guaranteeing that “centralized intermediaries, like Coinbase, ought to 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 massive banks are coming for his or her money seize, attempting to dam that,” he mentioned. “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, significantly 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, in keeping with the Bank Policy Institute (BPI).
By excluding crypto exchanges like Coinbase, “the necessities within the GENIUS Act may be simply evaded and undermined by permitting cost of curiosity not directly to holders of stablecoins,” the BPI mentioned.
As Cointelegraph reported, banking lobbies have grown more and more involved that stablecoins may threaten their enterprise mannequin — one which at the moment provides depositors minimal curiosity. Business insider and New York College professor Austin Campbell famous that bankers are “panicking” over the prospect of stablecoin holders incomes yields.
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