Let’s break down a major development that clearly shows what the real fight between traditional finance and crypto looks like 👇
Coinbase CEO Brian Armstrong has issued a strong warning over renewed discussions around the GENIUS Act, a proposed stablecoin bill. He called it a “red line”, arguing that this isn’t about safety or consumer protection — it’s about banks lobbying to crush competition.
⚔️ What’s the real conflict?
The current framework prevents stablecoin issuers (like USDC issuers) from paying interest directly to holders. However, crypto platforms such as Coinbase can still offer yield through rewards programs or third-party structures.
Banks don’t like this — and the reason is simple:
• Banks take public deposits
• Park reserves at the Fed earning ~4%
• Pay customers close to 0% on savings
Crypto platforms, using stablecoins, can share yield with users, giving everyday people a better deal.
According to Max Avery (Digital Ascension Group), banks are now lobbying lawmakers — under the banner of “safety” — to ban all stablecoin rewards, even when offered by platforms. The goal? Remove crypto’s competitive edge entirely.
🔥 Armstrong’s stance: This is a war for the future of finance
Armstrong didn’t hold back:
• He says he’s “impressed” by how openly banks are trying to block competition through Congress
• He believes this is an attack not just on stablecoins, but on fintech as a whole
• He predicts banks will eventually reverse course and lobby to pay interest on stablecoins themselves once they realize the opportunity
In his words, the current fight is a “100% waste of effort.”
⚖️ The regulatory paradox
Here’s the irony:
While some lawmakers — under bank pressure — are trying to restrict stablecoins, others are pushing to support them.
A group of US congressmen recently proposed exempting small stablecoin payments (up to $200) from capital gains tax. The goal is to encourage stablecoins as real payment tools, not just speculative assets.
So right now, Washington is split:
• One side sees stablecoins as a threat
• The other sees innovation, efficiency, and financial inclusion
❓ Big question
Who do you think wins this battle?
• Banking lobbyists fighting to protect the status quo?
• Or the crypto industry offering better yields, alternatives, and transparency?
And are traditional institutions really ready to adapt — just as Armstrong predicts?
👇 Share your thoughts and keep the discussion going.
#Stablecoin #coinbase #CoinbaseCEO $USDC