In recent statements, Coinbase CEO Brian Armstrong alleges that major U.S. banks are actively working to undermine President Donald Trump’s pro-cryptocurrency agenda. He has raised concerns that proposed amendments to a forthcoming Senate market structure bill may hinder innovation, prohibit specific categories of digital assets, and deprive Americans of the opportunity to earn yields on stablecoins.
During an extensive interview with Fox Business anchor Maria Bartiromo on the program Mornings With Maria, Armstrong characterized the latest legislative draft from the Senate Banking Committee as a “giveaway to the banks.” He contends that it poses risks of regulatory overreach and threatens to erode recent bipartisan advancements in cryptocurrency policy.
“After reviewing the Senate Banking draft over the last 48 hours, Coinbase is unfortunately unable to support this bill as currently written,” Armstrong stated. He highlighted provisions that would effectively ban tokenized securities, impose sweeping restrictions on decentralized finance (DeFi), weaken the Commodity Futures Trading Commission (CFTC), and eliminate rewards on stablecoins.
While he commended the Senate’s broader initiatives—particularly efforts led by Senators Tim Scott and Cynthia Lummis—Armstrong cautioned that the draft legislation circulating earlier this week raises “dangerous” concerns that are likely to be more challenging to address once the bill reaches the Senate floor.
Stablecoins at the Center of the Crypto Conflict
Central to the ongoing debate are stablecoin rewards. Armstrong asserts that recent legislation, such as the GENIUS Act—signed into law during the Trump administration—explicitly permits stablecoin issuers to offer yields, an aspect he considers vital for providing Americans with improved returns on their investments.
“The banks are attempting to undermine the president’s crypto agenda,” Armstrong alleges. “Their actions ultimately serve to protect their profit margins, detracting value from hardworking, average Americans and redirecting it to large banks achieving record profits.”
Armstrong contrasted stablecoins—which, under the GENIUS Act, must be fully backed by short-term U.S. Treasuries—with traditional fractional-reserve banking, arguing that stablecoins present significantly less systemic risk. “There is no fractional reserve associated with these stablecoins,” he explained. “They should not be subjected to the same regulatory frameworks as banks.”
Bartiromo questioned Armstrong on whether cryptocurrency platforms should be held to the same regulatory standards as banks, including deposit insurance and investor protections. Armstrong responded that such regulations primarily address risks inherent to fractional-reserve lending, noting that FDIC insurance only covers deposits up to $250,000.
“If customers wish to opt in to lending their funds, they can do so,” he clarified. “A bank license is not required for that. What mandates a bank license is the lending of individuals’ funds without their consent.”
Armstrong further refuted claims that stablecoins represent a threat to community banks, describing such arguments as a “red herring” propagated by larger financial institutions. He asserted that there is no evidence suggesting that community banks are losing deposits to stablecoins, emphasizing that consolidation driven by larger banks poses a much greater risk since the Dodd-Frank era.
The CEO of Coinbase also criticized Senate language that would elevate the SEC’s authority over the CFTC, necessitating that crypto assets be reviewed by the SEC before potentially falling under CFTC jurisdiction.
“I cannot comprehend why the Senate Agriculture Committee would subordinate the CFTC to the SEC,” he remarked, referencing the House-passed CLARITY Act, which clearly defines the division of oversight between digital commodities and securities.
Looking forward, Armstrong expressed optimism that lawmakers might amend the Senate bill to better align with President Trump’s cryptocurrency agenda. However, he emphasized an important caveat: “It is preferable to have no bill than to enact a detrimental one.”
“If the bill prohibits entire categories of new products, such as tokenized equities, I would rather see no bill at all,” Armstrong concluded. “We will not endorse legislation that negatively impacts ordinary Americans and stifles competition.”
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