The company Coinbase has returned to its negotiation process. After weeks of tension in Washington, Coinbase CEO Brian Armstrong says a breakthrough is close.
Armstrong spoke at the World Liberty Forum in Mar-a-Lago, where he joined Bernie Moreno to showcase his research about market structure talks, which he described as achieving “great progress”. He described the result to the three parties as a “win-win-win” which benefits cryptocurrency and banks and American consumers.
The earlier versions of the bill produced strong negative reactions. The proposal aimed to restrict stablecoin rewards, a move strongly favoured by traditional banks. The exchange pushed back hard. The company used its opposition to the bill as a means to delay the legislation, which would limit innovation and diminish customer selection according to their claims.
Armstrong states that the legislative body needed to address this problem because people fought against him. The result: a path forward.
For Coinbase, this fight is about more than regulation. The battle determines who will decide the upcoming developments of American monetary systems.
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Coinbase Defends Stablecoin Rewards and Long-Term Vision
The discussion centers around stablecoin yield which serves as its main point of contention. The issuers generate interest income from their reserves which include U.S. Treasuries. The question is simple, if that interest should be passed on to consumers?
Banks face their biggest threat from customers who withdraw their funds. Armstrong sees modernization.
He showed how people became angry with banks because they faced three major problems. High fees. Slow transfers. Unequal access. He believes stablecoin rewards create a more equitable financial system which increases industry competition. He warned that blocking the system would lead to capital flight to other countries while benefiting foreign competitors.
He mentioned China central bank digital currency projects together with offshore stablecoin development. The United States must support domestic innovation if it wants to maintain global leadership.
Coinbase Doubles Down Despite 20% Bitcoin Slide
Despite a 20% drop in Bitcoin this year, Armstrong remains calm. He described market fluctuations as psychological events. The exchange operates without any signs of withdrawal. The company proceeds with its Bitcoin purchases. The company repurchases its own stock. The company continues to develop its operations while facing the economic downturn.
Moreno expressed the same positive outlook by stating he would purchase Bitcoin at current market values. For the crypto exchange, market fluctuations create unwanted disturbances. The actual conflict exists between two permanent systems. Armstrong thinks the current situation has changed.
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