Brian Armstrong: Stalemate in Market Structure Bill Primarily Due to Banking Associations, Not Banks Themselves

Odaily News Coinbase CEO Brian Armstrong stated that the main reason for the deadlock in negotiations over crypto market structure legislation lies with banking trade groups, not individual banking institutions. Speaking at the World Liberty Forum in Florida, he pointed out that some industry associations view the crypto sector with a "zero-sum mindset," believing that for banks to win, the crypto industry must lose, thereby hindering the bill's progress.

One of the current contentious issues is whether to allow stablecoin rewards. After the market structure bill faced obstacles in the Senate Banking Committee, banking representatives have insisted on limiting stablecoin reward provisions during multiple rounds of meetings organized by the White House. The next round of related meetings is expected to take place this week.

Armstrong indicated that he anticipates some form of compromise may emerge in the future, offering banks new policy benefits in exchange for their support of the bill. He also emphasized that the real concern for small and medium-sized banks is not funds flowing to stablecoin issuers, but deposits moving to larger banking institutions. Meanwhile, several major banks have begun venturing into crypto businesses, and Coinbase is currently providing crypto infrastructure support for "five out of the top five global banks."

Armstrong believes that since compliant stablecoin products with reward mechanisms have already emerged in the United States, the industry and regulators need to decide whether to treat them as an opportunity or a threat.