Coinbase CEO Brian Armstrong opposes reopening the GENIUS Act, citing bank lobbying against stablecoin competition.
Coinbase CEO Brian Armstrong has stated that reopening the GENIUS Act is a red line. The 2025 law created a clear framework for blockchain payments and on-chain financial services. Armstrong said banks are lobbying to change the law to protect their traditional business models. He argued these efforts are not about safety but about blocking competition. The comments come amid growing discussions on stablecoin regulations in the United States.
GENIUS Act and Its Purpose
The GENIUS Act was introduced in 2025 to regulate stablecoins in the United States. The law sets requirements for reserves, compliance, and consumer protection. It allows private issuers to operate alongside banks under clear rules. Supporters say it provides regulatory clarity for blockchain finance. Critics have argued that changes could favor banks and limit innovation.
Brian Armstrong said changes could tilt the market in favor of incumbent banks. He warned that limiting stablecoin operations would slow the adoption of blockchain payments. Armstrong emphasized that stablecoins are a core part of digital finance infrastructure.
Banks and Lobbying Efforts
Major banks have pushed for revisions to the GENIUS Act. They seek stricter requirements for stablecoin issuers that do not affect banks. Armstrong said these actions could reduce competition in digital payments. He predicted that banks may support blockchain operations once they see profit potential. Lobbying around stablecoin legislation has increased as adoption grows.
Industry observers note that both banks and crypto firms are investing more in advocacy. This comes as lawmakers review digital asset regulations before the 2026 elections. The debate shows the growing tension between traditional financial institutions and crypto platforms.
Related Readings: GENIUS Act Sparks Rise in Stablecoin Adoption, EY Survey
Stablecoins in the U.S. Financial System
Stablecoins are pegged to the U.S. dollar and widely used for trading and transfers. They allow low-cost, fast, and global transactions outside traditional banking rails. Armstrong said stablecoins are not speculative but part of the payment infrastructure. Exchanges and fintech companies use them for cross-border settlements and liquidity. Regulators are divided between supporting innovation and controlling financial stability.
Coinbase has collaborated with regulators to establish clear guidelines for the crypto market. Armstrong’s statement signals concern over potential changes that could favor banks. The company has consistently supported regulated frameworks for long-term growth. The debate over the GENIUS Act may shape the future of stablecoins in the U.S.
The battle over stablecoin rules continues as lawmakers consider potential amendments. Armstrong’s comments indicate that the crypto sector is prepared to defend existing frameworks. The outcome will affect exchanges, fintech firms, and the broader financial system. Stakeholders are closely monitoring discussions to see how rules evolve.
Source: https://www.livebitcoinnews.com/coinbase-ceo-brian-armstrong-rejects-reopening-of-genius-act/
