Coinbase CEO pushed again towards the banks, claiming they’re attempting to dam stablecoin rewards to guard their monopoly.
Abstract
- Coinbase CEO Brian Armstrong is lobbying for the Market Construction Act
- He claims that banks wish to ban stablecoin rewards to guard their monopoly
- The U.S. Senate is presently deliberating on the Market Construction Act
Coinbase escalated its battle with TradFi, doubling down on its lobbying efforts and accusing banks of attempting to guard their monopoly. On Monday, September 29, Coinbase CEO Brian Armstrong posted on X whereas in Washington, D.C., lobbying lawmakers on stablecoin regulation.
Armstrong spoke from Capitol Hill whereas the U.S. Senate deliberated on the Digital Asset Market Construction and Investor Safety Act. This piece of laws, clarifying crypto guidelines past these lined by the GENIUS Act, will decide which company is answerable for crypto regulation and prolong investor protections.
“I’ve by no means been extra bullish about clear guidelines for crypto. It’s apparent that market construction is a freight practice that’s left the station,” stated Coinbase CEO Brian Armstrong. “However that hasn’t stopped the massive banks from coming for one more handout – this time paid by your crypto rewards,” he added.
Banks wish to ban stablecoin rewards: Armstrong
Based on Armstrong, banks are attempting to relitigate points that have been already settled with the GENIUS Act. Notably, he says the banking foyer is coming after stablecoin rewards.
“Banks wish to ban rewards to take care of their monopoly, and we’re ensuring the Senate is aware of bailing out the massive banks on the expense of the American client is just not okay,” Armstrong acknowledged.
Stablecoin rewards are a contentious regulatory concern. Below the GENIUS Act, stablecoins usually are not allowed to pay curiosity. Nonetheless, they’re allowed to pay rewards, which some within the banking sector think about a loophole.
Notably, banks worry that stablecoin rewards might trigger a capital flight from the banks. What’s extra, in keeping with the April Treasury Division report, customers may transfer as a lot as $6.6 trillion out of banks into stablecoins, doubtlessly threatening the banks’ skill to lend.
