Coinbase CEO Brian Armstrong opposes reopening the GENIUS Act, citing financial institution lobbying in opposition to stablecoin competitors.
Coinbase CEO Brian Armstrong has said that reopening the GENIUS Act is a crimson line. The 2025 regulation created a transparent framework for blockchain funds and on-chain monetary providers. Armstrong mentioned banks are lobbying to alter the regulation to guard their conventional enterprise fashions. He argued these efforts will not be about security however about blocking competitors. The feedback come amid rising discussions on stablecoin rules in the USA.
GENIUS Act and Its Function
The GENIUS Act was launched in 2025 to manage stablecoins in the USA. The regulation units necessities for reserves, compliance, and shopper safety. It permits personal issuers to function alongside banks underneath clear guidelines. Supporters say it supplies regulatory readability for blockchain finance. Critics have argued that modifications may favor banks and restrict innovation.
🚨 BRIAN ARMSTRONG SAYS REOPENING THE GENIUS ACT IS A RED LINE
Coinbase CEO Brian Armstrong is pushing again in opposition to financial institution lobbying to reopen the GENIUS Act ; the 2025 regulation that created the primary clear U.S. framework for blockchain-based funds and on-chain monetary providers.… pic.twitter.com/OoiiE6Gi1l
— CryptosRus (@CryptosR_Us) December 27, 2025
Brian Armstrong mentioned modifications may tilt the market in favor of incumbent banks. He warned that limiting stablecoin operations would gradual the adoption of blockchain funds. Armstrong emphasised that stablecoins are a core a part of digital finance infrastructure.
Banks and Lobbying Efforts
Main banks have pushed for revisions to the GENIUS Act. They search stricter necessities for stablecoin issuers that don’t have an effect on banks. Armstrong mentioned these actions may cut back competitors in digital funds. He predicted that banks could assist blockchain operations as soon as they see revenue potential. Lobbying round stablecoin laws has elevated as adoption grows.
Business observers notice that each banks and crypto companies are investing extra in advocacy. This comes as lawmakers evaluation digital asset rules earlier than the 2026 elections. The talk exhibits the rising stress between conventional monetary establishments and crypto platforms.
Associated Readings: GENIUS Act Sparks Rise in Stablecoin Adoption, EY Survey
Stablecoins within the U.S. Monetary System
Stablecoins are pegged to the U.S. greenback and extensively used for buying and selling and transfers. They permit low-cost, quick, and world transactions exterior conventional banking rails. Armstrong mentioned stablecoins will not be speculative however a part of the fee infrastructure. Exchanges and fintech firms use them for cross-border settlements and liquidity. Regulators are divided between supporting innovation and controlling monetary stability.
Coinbase has collaborated with regulators to determine clear pointers for the crypto market. Armstrong’s assertion indicators concern over potential modifications that would favor banks. The corporate has constantly supported regulated frameworks for long-term development. The talk over the GENIUS Act could form the way forward for stablecoins within the U.S.
The battle over stablecoin guidelines continues as lawmakers take into account potential amendments. Armstrong’s feedback point out that the crypto sector is ready to defend current frameworks. The end result will have an effect on exchanges, fintech companies, and the broader monetary system. Stakeholders are carefully monitoring discussions to see how guidelines evolve.