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Brian Armstrong attributes the deadlock on the market structure bill to banking trade organizations.
Coinbase CEO Brian Armstrong mentioned that revised market structure legislation might provide additional advantages to banks, encouraging them to support stablecoin rewards.
Coinbase CEO Brian Armstrong (Nikhilesh De/CoinDesk)
PALM BEACH, Fla. — Brian Armstrong stated that banking trade associations, rather than individual banks, are primarily to blame for the halted discussions regarding crypto market structure legislation.
He noted that banks are viewing cryptocurrency as a potential opportunity during his remarks at the World Liberty Forum held at Mar-a-Lago on Wednesday.
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"For various reasons, incumbent industries often have trade groups that perceive the situation through a zero-sum lens, believing that for banks to succeed, crypto must falter," he remarked. "They aren’t recognizing this as a beneficial [development]."
Banking trade organizations have been representing the sector in discussions with the crypto industry organized by the White House since the Senate Banking Committee’s initiative to promote market structure legislation last month was unsuccessful. The most recent meeting occurred last week, where the banking sector maintained its stance that the bill should prohibit stablecoin rewards.
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The upcoming meeting is scheduled for Thursday morning, according to sources familiar with the agenda, as reported by CoinDesk.
Read more: Crypto’s banker adversaries didn’t want to deal in latest White House meeting on bill
Armstrong expressed his belief that some form of compromise would emerge, granting banks new advantages under a revised market structure bill, although he did not provide further details. The Digital Asset Market Clarity Act encountered delays the night before a Senate Banking Committee hearing after Armstrong publicly rescinded his company’s endorsement.
In the present discussions, the Coinbase co-founder contended that smaller and medium-sized banks do not genuinely fear a migration of deposits to stablecoin issuers, but rather are more concerned about deposit transfers to larger banks.
He further stated that major banks are also embracing cryptocurrency, mentioning that Coinbase is assisting in building crypto infrastructure for "five of the largest banks globally."
Additional banks are actively recruiting blockchain or crypto specialists via LinkedIn.
"We now exist in an environment where regulated U.S. stablecoins offer rewards," he observed. "You must acknowledge this reality and determine whether to perceive it as an opportunity or a threat."
