{"id":12067,"date":"2025-09-29T18:46:16","date_gmt":"2025-09-29T18:46:16","guid":{"rendered":"https:\/\/bitunikey.com\/news\/armstrong-warns-senate-dont-bail-out-banks-by-banning-crypto-rewards\/"},"modified":"2025-09-29T18:46:26","modified_gmt":"2025-09-29T18:46:26","slug":"armstrong-warns-senate-dont-bail-out-banks-by-banning-crypto-rewards","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/armstrong-warns-senate-dont-bail-out-banks-by-banning-crypto-rewards\/","title":{"rendered":"Armstrong warns Senate: don\u2019t bail out banks by banning crypto rewards"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Coinbase CEO pushed back against the banks, claiming they are trying to block stablecoin rewards to protect their monopoly.<\/p>\n<div id=\"cn-block-summary-block_8d8b5196849a86d9643233f31f67d1a3\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Coinbase CEO Brian Armstrong is lobbying for the Market Structure Act<\/li>\n<li>He claims that banks want to ban stablecoin rewards to protect their monopoly<\/li>\n<li>The U.S. Senate is currently deliberating on the Market Structure Act<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Coinbase escalated its fight with TradFi, doubling down on its lobbying efforts and accusing banks of trying to protect their monopoly. On Monday, September 29, Coinbase CEO Brian Armstrong posted on X while in Washington, D.C., lobbying lawmakers on stablecoin regulation.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I&#8217;ve never been more bullish about clear rules for crypto. It\u2019s obvious that market structure is a freight train that&#8217;s left the station.<\/p>\n<p>But that hasn&#8217;t stopped the big banks from coming for another handout \u2013 this time paid by your crypto rewards. They want to undo your right\u2026 <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/hmPYmagDhj\">pic.twitter.com\/hmPYmagDhj<\/a><\/p>\n<p>\u2014 Brian Armstrong (@brian_armstrong) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/brian_armstrong\/status\/1972712014087631299?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">September 29, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Armstrong spoke from Capitol Hill while the U.S. Senate deliberated on the Digital Asset Market Structure and Investor Protection Act. This piece of <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.congress.gov\/bill\/118th-congress\/house-bill\/5745\" target=\"_blank\" rel=\"nofollow\">legislation<\/a>, clarifying crypto rules beyond those covered by the GENIUS Act, will determine which agency is in charge of crypto regulation and extend investor protections. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cI\u2019ve never been more bullish about clear rules for crypto. It\u2019s obvious that market structure is a freight train that\u2019s left the station,\u201d <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=GEyMELdqzVU\" target=\"_blank\" rel=\"nofollow\">said<\/a> Coinbase CEO Brian Armstrong. \u201cBut that hasn\u2019t stopped the big banks from coming for another handout \u2013 this time paid by your crypto rewards,\u201d he added. <\/p>\n<\/blockquote>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Banks want to ban stablecoin rewards: Armstrong<\/h2>\n<p>According to Armstrong, banks are trying to relitigate issues that were already settled with the GENIUS Act. Notably, he says the banking lobby is coming after stablecoin rewards.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cBanks want to ban rewards to maintain their monopoly, and we\u2019re making sure the Senate knows bailing out the big banks at the expense of the American consumer is not ok,\u201d Armstrong stated. <\/p>\n<\/blockquote>\n<p>Stablecoin rewards are a contentious regulatory issue. Under the GENIUS Act, stablecoins are not allowed to pay interest. However, they are allowed to pay rewards, which some in the banking sector consider a loophole.<\/p>\n<p>Notably, banks fear that stablecoin rewards could cause a capital flight from the banks. What is more, according to the April Treasury Department <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/home.treasury.gov\/system\/files\/221\/TBACCharge2Q22025.pdf\/\" target=\"_blank\" rel=\"nofollow\">report<\/a>, consumers might move as much as $6.6 trillion out of banks into stablecoins, potentially threatening the banks\u2019 ability to lend.  <\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase CEO pushed back against the banks, claiming they are trying to block stablecoin rewards to protect their monopoly. Summary Coinbase CEO Brian Armstrong is lobbying for the Market Structure&hellip;<\/p>\n","protected":false},"author":1,"featured_media":12068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/12067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=12067"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/12067\/revisions"}],"predecessor-version":[{"id":12069,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/12067\/revisions\/12069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/12068"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=12067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=12067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=12067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}