Banks in danger? Armstrong Warns of Stablecoin Rewards Ban!

Banks in danger? Armstrong Warns of Stablecoin Rewards Ban!

On October 2, 2025, the discussion about the regulation of cryptocurrencies in the USA continues to grow. Brian Armstrong, CEO of Coinbase, is a strong advocate for the so-called Market Structure Act. He believes banks are trying to ban stablecoin rewards to protect their monopoly position. Armstrong spoke in Washington, D.C. and called for clear regulations for the crypto market while the US Senate is currently debating the Digital Asset Market Structure and Investor Protection Act.

The proposed legislation aims to clarify the rules for cryptocurrencies and determine which authority will be responsible for regulation. Armstrong warned that banks are seeking to undermine consumer rights when it comes to cryptocurrency rewards and underscored the need to protect consumers' interests.

Reactions from banks and financial regulators

Armstrong accused banks of wanting to question already established regulations of the GENIUS Act. The law prohibits stablecoins from paying interest but allows offering rewards, which some banks see as a loophole. This concern may be related to a recent report from the US Treasury Department. According to this report, consumers could transfer up to $6.6 trillion from traditional banks to stablecoins, which could have a significant impact on bank lending.

In this context, the discussion about the future role of stablecoins and their impact on banking is of central importance. Banks fear that the rewards in stablecoins could lead to a withdrawal of capital from traditional banks, which would ultimately threaten the stability of their financing models.

Armstrong urged the Senate not to take any action that could give banks further advantage by restricting future opportunities to use stablecoins under the guise of protecting consumers. Its approach aims to strike a balance between consumer protection and banking interests, while creating a transparent and fair regulatory environment for digital assets.

The coming weeks will be crucial to see how the US Senate responds to these challenges and what course is set for the future of the crypto market.

For more information about Armstrong's advocacy work and current developments in crypto regulation, please visit crypto.news.