Brian Armstrong drew a red line as banks push to reopen the GENIUS Act. Brian Armstrong took to X over the weekend, warning that reopening the GENIUS Act would trigger a backlash from Coinbase and the broader crypto community. His post came amid reports that U.S. banks are pressuring lawmakers to roll back provisions that allow crypto platforms to offer rewards linked to stablecoins.
Armstrong described the lobbying as unethical and short-sighted, predicting banks will eventually reverse course once they realize the potential for profit. “Exactly – I’m actually impressed the banks can lobby for this with a straight face and not get kicked out of senator’s offices. It takes some serious mental gymnastics.” We won’t let anyone reopen GENIUS. Red line issue for us. Armstrong’s comments reflect rising concern within the crypto industry about possible amendments to the GENIUS Act.
Armstrong accused banks of framing the issue as a “safety concern” while actually trying to suppress competition and protect their earnings. He said Coinbase would fight efforts to revise the law, arguing that changes would “stall innovation rather than protect consumers.” Armstrong also predicted that banks would eventually see the upside and start “lobbying for the ability to pay interest and yield on stablecoins” in the future, calling current opposition “100 percent wasted” and rooted in self-interest, not public risk.
The GENIUS Act was a landmark piece of crypto legislation, creating a structured framework for blockchain payments, compliance standards, and consumer protections. It allowed private stablecoin issuers to legally operate alongside banks under a single regulatory system. Supporters argue it struck a smart balance, enabling innovation without removing key guardrails. Critics from the banking sector say it gives fintech companies a competitive edge, especially since stablecoin platforms often return more yield to users than traditional savings accounts.
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