Armstrong said that banking trade groups, not individual banks, shoulder the responsibility for the stalemate in crypto market-structure talks. Banks themselves are viewing crypto as an opportunity, he stated at the World Liberty Forum in Mar-a-Lago. He argued that some incumbent industries organize through trade groups with a zero-sum mindset, implying that accepting a crypto-friendly framework is necessary to avoid a loss.
Trade groups have represented the industry in White House meetings since the Senate Banking Committee’s bid to move market structure legislation collapsed. In the latest session, bankers demanded that any draft block stablecoin rewards. Armstrong anticipated some compromise where banks would obtain benefits under a revised draft, though he did not detail them.
Armstrong noted that the Digital Asset Market Clarity Act stalled after Coinbase withdrew its support. He argued that deposit-flight concerns among small and mid-sized banks center more on larger banks than on stablecoin issuers, while major banks are increasingly embracing crypto infrastructure. Coinbase is reportedly supporting crypto infrastructure for five of the world’s largest banks, and other banks are actively hiring blockchain and crypto talent. He concluded that regulated U.S. stablecoins with rewards are now a reality to be treated as either an opportunity or a threat.
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