Coinbase CEO Brian Armstrong signals progress on US crypto market structure talks and backs stablecoin rewards reform.
Coinbase CEO Brian Armstrong said there is progress in US crypto regulation talks and a path toward agreement.
Speaking at the World Liberty Forum and later on CNBC, he noted that lawmakers and industry leaders have resumed negotiations on market structure legislation.
Armstrong said the goal is a “win-win-win” outcome for crypto firms, banks, consumers, and President Donald Trump’s agenda.
Market Structure Bill Returns to Negotiations
The debate centers on a proposed US market structure bill. Earlier drafts included limits on stablecoin reward payments.
Traditional banks supported these limits to protect their deposit bases. Coinbase and other crypto firms raised concerns about this provision.
The company objected to restrictions on issuers passing interest earned on reserves to users. Those reserves often include US Treasury holdings.
Armstrong explained the company’s position during his CNBC interview. “What we did say was the current draft, we had some issues with it,” he said.
He noted that the objections prompted lawmakers and stakeholders to reopen discussions.
Brian said progress is now visible. He added that cooperation between lawmakers and industry groups is ongoing.
The talks aim to produce a version of the bill that addresses concerns from both sides. Armstrong also linked the effort to broader policy goals.
He said the administration wants to position the United States as a global crypto leader. He stated that repatriating capital and supporting domestic innovation remain priorities.
Stablecoin Rewards at the Center of Debate
Stablecoin rewards remain a key point in the discussions. Issuers generate interest from underlying reserves such as US Treasuries.
The proposal would allow issuers to share that interest with consumers. Traditional banks argue that such payments could draw deposits away from them.
Armstrong countered that financial services need modernization. He said many Americans are dissatisfied with current banking systems.
“If you survey Americans, 87% of them say that the current financial system doesn’t work for them,” Armstrong said. He cited high fees, delays, and unequal access as concerns.
Armstrong also warned that limiting rewards could push activity offshore. He noted that some unregulated stablecoins operate outside US jurisdiction.
He added that China is developing a central bank digital currency that pays interest. Armstrong said regulated US stablecoins should remain competitive.
He argued that enabling rewards could help keep capital within the country. He stated that some banks are already adapting to digital asset trends.
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Market Volatility and Coinbase Strategy
Bitcoin has declined about 20% this year. Some analysts linked the drop to macroeconomic uncertainty. Others cited concerns about emerging technologies.
Armstrong dismissed these factors as short-term market movements. “In my view, the markets are a little bit more psychological than that,” he said. He suggested that traders may be locking in gains.
He said Coinbase retail users have stayed resilient during the downturn, with data showing increased net buying of both BTC and ETH.
Armstrong also confirmed that Coinbase is repurchasing its own stock. He said the company remains focused on long-term growth. He stated that market declines can offer buying opportunities.
Armstrong maintained that regulatory clarity remains essential. He said progress on the market structure bill could provide certainty for companies and consumers.
He added that cooperation between crypto firms and banks could support wider adoption.
Source: https://www.livebitcoinnews.com/coinbase-ceo-sees-win-win-path-for-crypto-banks-and-us-consumers/
