Armstrong: Banking trade groups blocking market-structure bill, stalling stablecoin rewards
Coinbase CEO Brian Armstrong said banking trade groups — not individual banks — are primarily responsible for the impasse over updated U.S. market-structure legislation that would affect stablecoin rewards. Speaking at the World Liberty Forum in Palm Beach, Armstrong argued many banks view crypto as an opportunity, and that smaller banks’ real concern is deposit migration to bigger banks rather than stablecoin issuers. Banking trade groups have pressed for the bill to block stablecoin rewards in recent White House-hosted meetings after the Senate Banking Committee’s effort to advance the Digital Asset Market Clarity Act stalled last month. Armstrong expects a compromise that grants new benefits to banks under a revised bill; he noted Coinbase supports crypto infrastructure for several of the world’s largest banks. The dispute follows Armstrong’s withdrawal of Coinbase’s support for the earlier bill. Key names: Brian Armstrong, Coinbase; policy focus: market-structure bill, stablecoin rewards, banking trade groups. Primary keywords: market structure bill, stablecoin rewards, banking trade groups. Secondary/semantic keywords: Coinbase, Brian Armstrong, Digital Asset Market Clarity Act, deposit flight, White House talks.
Neutral
This news is categorized as neutral. It signals regulatory negotiation risk rather than an immediate market-moving event. Armstrong’s comments highlight political friction — banking trade groups pushing to block stablecoin rewards — which could delay or reshape market-structure legislation. Short-term impact: increased policy uncertainty may produce modest volatility in stablecoin-related and exchange tokens as traders price regulatory risk, but no direct catalyst for a sustained market move. Similar past episodes (e.g., paused crypto bills, Congressional pushback) caused short-lived price swings followed by normalization once wording or compromises emerged. Long-term impact: outcome-dependent — if banks secure concessions that curb stablecoin rewards, it could be mildly negative for yield-bearing stablecoin products and protocols that rely on them; conversely, a compromise granting banks benefits while keeping stablecoin rewards viable could be bullish for broader adoption and infrastructure integrations. Traders should watch legislative texts, White House and Senate Banking Committee meetings, and any revisions to the Digital Asset Market Clarity Act for directional cues. Key indicators to monitor: stablecoin flow and yields, exchange orderbooks for USD-stable pairs, regulatory headlines, and institutional custody/infrastructure announcements from major banks.