Coinbase CEO Brian Armstrong has sharply criticized major banks for allegedly trying to undermine the ability of crypto exchanges to offer rewards on stablecoins like Circle’s USDC.
In a series of posts on X, Armstrong accused the banking industry of attempting to “preserve their monopoly over deposits” by lobbying to strip away users’ rights to earn stablecoin yields under the GENIUS Act. “They want to undo your right to earn USDC rewards. Don’t let them,” he warned.
Armstrong also argued that protecting big banks—despite their record-breaking profits—would be a serious political misstep. “It’s not gonna fly. That would be foolish because 50 million Americans have now used crypto,” he said.
Coinbase, alongside other crypto platforms like Kraken, Gemini, and BitGo, is spearheading a lobbying campaign to stop efforts aimed at banning stablecoin rewards. The Bank Policy Institute is reportedly pushing for new rules to prevent exchanges from offering yields, claiming stablecoins threaten traditional deposits and credit markets.
In response, the Blockchain Association launched a campaign today to defend the GENIUS Act, arguing that stablecoins actually strengthen the financial system by enabling faster settlements and cheaper transactions.
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