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Coinbase chief executive Brian Armstrong has warned banks not to push for changes to the GENIUS Act, calling any attempt to reopen the law a red line.
In a post on social media platform X on Sunday, Armstrong accused parts of the banking sector of using political pressure to suppress competition from stablecoins and fintech firms.
We won’t let anyone reopen GENIUS.
Brian Armstrong said, adding that Coinbase would actively oppose any effort to revise the legislation.
He said he was surprised banks could lobby Congress so openly without triggering wider public backlash.
Armstrong argued that reopening the Act would slow innovation rather than improve consumer protection.
He described the push as a defensive move by incumbents rather than a response to genuine financial risk.
Armstrong predicted that banks’ opposition to stablecoins would eventually reverse.
My prediction is the banks will actually flip and be lobbying FOR the ability to pay interest and yield on stablecoins in a few years.
Brian Armstrong said.
He labelled current efforts to restrict stablecoin rewards as “100% wasted” and “unethical.”
The comments highlight how central yield and rewards have become to stablecoin adoption and platform growth.
The GENIUS Act currently prevents stablecoin issuers from paying interest directly to users.
However, the law allows platforms and third parties to distribute rewards through alternative mechanisms.
This structure has enabled exchanges, wallets and fintech apps to share yield generated from reserves.
Critics argue the framework balances innovation with consumer protection.
Some banking representatives claim the model still creates uneven competition.
The renewed debate was sparked by comments from Digital Ascension Group executive Max Avery.
Avery said banks want lawmakers to extend restrictions beyond direct interest payments.
He argued proposed amendments could limit rewards and yield-sharing offered by platforms.
They’re calling it a ‘safety concern.
Max Avery said, questioning claims about community bank risks.
Avery added that research shows no evidence of disproportionate deposit outflows from smaller banks.
Armstrong suggested broader restrictions would eliminate one of stablecoins’ key consumer advantages.
The dispute comes amid wider US discussions on crypto regulation and taxation.
Lawmakers recently proposed exempting stablecoin payments under $200 from capital gains tax.
The same draft would allow delayed taxation on staking and mining rewards.
Analysts say the outcome of the GENIUS Act debate could shape the future of digital dollar adoption.
For now, stablecoin platforms continue operating within existing legal boundaries as lobbying intensifies.