Coinbase CEO Brian Armstrong stated that there is growing momentum in Washington for the long-awaited reform of the cryptocurrency market structure, even though the U.S. government remains in a stalemate.

In a video posted on X, Armstrong said that senators from both political parties are "closer than ever" to finalizing a framework that will bring clarity to the regulation of digital assets. He expressed optimism that the bill could be moved forward by Thanksgiving, noting that "about 90%" of the clauses have already been agreed upon. The remaining discussions, according to him, concern more complex areas such as decentralized finance (DeFi).
According to Armstrong, lawmakers are trying to find a balance between promoting innovation and ensuring oversight of centralized platforms. "It is important for exchanges like Coinbase to be regulated – not the protocols themselves," he said, emphasizing that DeFi must remain open and without permissioned control.
Armstrong also touched on the topic of protecting the incentives for stablecoins introduced by the new federal GENIUS Act – a regulatory framework that establishes national standards for reserves, disclosures, and consumer protections regarding stablecoins. He warned that large banks are lobbying to undermine these rules, especially the parts that allow rewards through stablecoins.
"The big banks are trying to regain control," Armstrong said. "We will not allow them to roll back what has been achieved."
His comments come against a backdrop of increasing resistance from banking lobbies, which claim that the GENIUS Act creates a loophole. While the law prohibits stablecoin issuers from paying direct interest, it does not prohibit exchanges from offering yield through indirect mechanisms – a gap that, according to the Bank Policy Institute, could be exploited.
Analysts comment that this debate highlights the deeper tension between traditional finance and the digital ecosystem. According to New York University Professor Austin Campbell, banks see stablecoins as a threat to their low-interest deposit model. "They react in panic at the thought of competition for yields," Campbell said.
Although the government shutdown is slowing down work in Washington, Armstrong's statement suggests that crypto regulation remains an active topic in the Senate – a sign that real progress can still be made before the end of the year.