Coinbase CEO Brian Armstrong has warned US lawmakers against reopening the recently passed GENIUS Act, arguing that changes could reduce competition in the stablecoin market. He accused major banks of pushing Congress to weaken the law to protect their own interests. The comments come as debate grows over how stablecoins should be regulated in the United States. Armstrong said in a post on X that reopening the GENIUS Act would cross a red line, and he argued that banks are lobbying to block stablecoin rewards and limit the role of fintech platforms.
Coinbase, he added, would push back against any effort to revise the legislation after months of negotiations. Max Avery highlighted several issues behind bank opposition: Proposed amendments could restrict both direct and indirect stablecoin rewards. Platforms could lose the ability to share yield through third-party programs. Banks earn about 4% on reserves held at the Federal Reserve.
Traditional savings accounts often pay little or no interest. Research shows no clear evidence of major deposit losses at community banks. Banks are framing the issue as a safety concern while protecting profit margins, Avery said. Stablecoin platforms, he argued, challenge the existing system by sharing returns with users, putting pressure on banks to change long-standing practices.
Last week, US lawmakers introduced a draft bill to ease tax rules for everyday crypto use. Representatives Max Miller and Steven Horsford proposed exempting stablecoin payments of up to $200 from capital gains taxes, making them easier to use for daily spending. Other provisions would allow users to delay reporting income from staking and mining rewards for up to 5 years. Taken together, the proposals show that stablecoins are playing an increasingly prominent role in US financial and tax policy debates.
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