Stablecoin Interest Showdown: Coinbase Draws a Hard Line on Genius Act Reforms

The crypto-banking divide is intensifying as Coinbase CEO Brian Armstrong takes a defiant stance on proposed modifications to the Genius Act. In a series of posts on X, Armstrong made it clear that the company views any attempts to reshape the legislation as non-negotiable, branding the matter a critical boundary that cannot be crossed.

The core dispute centers on stablecoin reward mechanisms. Under current Genius Act provisions, stablecoin issuers face restrictions on offering yield incentives, while trading platforms like Coinbase operate without such limitations. This asymmetry has prompted traditional banks and financial institutions to push for legislative revisions that would level the playing field.

Armstrong’s response was pointed: he dismissed the banking sector’s lobbying campaign as both counterproductive and ethically questionable. His confident prediction that these institutions will eventually capitulate and embrace stablecoin interest only underscores the philosophical gap between legacy finance and the crypto ecosystem.

The Genius Act represents one of the most consequential regulatory frameworks governing the digital asset space. Armstrong’s uncompromising position highlights the intensifying power struggle between established financial players and cryptocurrency platforms over who shapes tomorrow’s financial infrastructure. As this battle unfolds, both sides remain locked in a strategic standoff with no clear resolution in sight.