Coinbase CEO Brian Armstrong stated that despite the ongoing stalemate in the U.S. government, Washington is building momentum to drive the long-awaited reforms in the crypto market structure.

In the video released by X, Armstrong stated that cooperation from bipartisan senators is "closer than ever" and is finalizing a framework that will bring clarity to the regulation of digital assets. He expressed optimism that the bill could advance before Thanksgiving and noted that "about 90%" of the provisions have been agreed upon. He mentioned that the remaining discussions involve more complex areas such as decentralized finance (DeFi).
According to Armstrong, lawmakers are trying to find a balance between promoting innovation and regulating centralized platforms. He stated, "Exchanges like Coinbase must be regulated - not the protocols themselves." He emphasized that DeFi must remain open and permissionless.
Armstrong also mentioned the topic of stablecoin incentive protections introduced by the new federal bill, the GENIUS Act - this legal framework sets national standards for stablecoin reserves, disclosures, and consumer protections. He warned that large banks are lobbying to weaken these rules, particularly the part that allows rewards to be offered through stablecoins.
"The big banks are trying to regain control," Armstrong said. "We will not let them take back the achievements we have made."
His comments were made against the backdrop of increasing resistance from banking lobbying groups, which claim that the GENIUS Act creates a loophole. Although the act prohibits stablecoin issuers from paying direct interest, it does not prevent exchanges from providing returns through indirect mechanisms—according to the Bank Policy Institute, this loophole could be exploited.
Analysts comment that this debate highlights a deeper tension between traditional finance and the digital ecosystem. According to Austin Campbell, a professor at New York University, banks view stablecoins as a threat to their low-interest deposit models. Campbell stated, "They panic when thinking about competition for yields."
Although the government shutdown has delayed work in Washington, Armstrong's statement suggests that cryptocurrency regulation remains an active topic in the Senate — indicating that substantial progress may still be possible before the end of the year.