Even amid a partial government shutdown, progress on U.S. crypto legislation continues behind closed doors — and Coinbase CEO Brian Armstrong says the finish line is in sight. According to Armstrong, senators are “90% there” on a bipartisan market structure bill that could reshape how digital assets are regulated across the country.
Senate Inches Closer to Crypto Clarity
In a video posted on X, Armstrong expressed optimism that lawmakers are moving closer to advancing comprehensive crypto market structure legislation by Thanksgiving. “Even though the government is shut down, the Senate is working hard on getting market structure legislation passed for crypto,” he said.
Armstrong revealed that most of the framework has already been agreed upon, with only the final 10% revolving around decentralized finance (DeFi) — a complex area requiring careful treatment. Lawmakers, he added, are determined to balance oversight and innovation, ensuring that centralized exchanges like Coinbase face appropriate regulation while decentralized protocols remain free to evolve.
Protecting Innovation and Stablecoin Rewards
The Coinbase chief also stressed the need to “preserve stablecoin rewards,” referencing the GENIUS Act passed earlier this year. The law established federal standards for stablecoin reserves, transparency, and consumer protections — but it has also drawn pushback from traditional banking interests.
“The big banks are coming for their cash grab, trying to block that,” Armstrong warned, signaling his intent to defend the legislation against efforts to roll back key provisions. He argued that banks are attempting to reframe stablecoin yield opportunities as unfair competition, despite the innovation benefits stablecoins bring to consumers and businesses alike.
Banking Lobby Pushback Intensifies
Much of the resistance stems from the banking sector’s unease with stablecoin yield mechanics. The Bank Policy Institute (BPI) recently argued that the GENIUS Act contains a loophole: while it prevents stablecoin issuers from offering direct interest, it doesn’t explicitly stop exchanges from doing so indirectly.
“By excluding crypto exchanges like Coinbase, the requirements in the GENIUS Act can be easily evaded and undermined,” the BPI said in a statement. Traditional financial institutions see this as an existential threat to their deposit model, where savers earn minimal returns compared to what stablecoin ecosystems might offer.
A Fight Over the Future of Finance
As more lawmakers warm up to blockchain innovation, industry experts believe this ongoing tug-of-war between banks and crypto platforms highlights a broader shift in financial power. Austin Campbell, a New York University professor and industry analyst, noted that bankers are “panicking” at the thought of consumers choosing stablecoins over traditional savings accounts.
Armstrong’s confidence suggests that crypto regulation — long criticized as fragmented — could soon gain long-awaited clarity. For both policymakers and market participants, the coming months may determine whether the U.S. cements itself as a leader in digital finance or continues to lag behind global competitors.