Coinbase CEO Predicts U.S. Crypto Market Structure Bill to Pass by Year-End

Brian Armstrong, CEO of Coinbase, has voiced confidence in the imminent passage of the U.S. crypto market structure bill before the year concludes. His optimism comes amid a federal government shutdown, now stretching into its 33rd day, as discussions surrounding comprehensive crypto regulations gain traction in Washington, D.C.

Legislative Progress on Crypto Market Clarity

During a visit to the nation’s capital, Armstrong highlighted significant bipartisan progress, stating, "90% agreement has been reached between Senate Democrats and Republicans" on the proposed legislation. This pivotal bill is designed to establish clearer guidelines for crypto trading platforms, custody services, and stablecoin operations, all of which are critical to fostering industry transparency and innovation. Armstrong described the ongoing negotiations as being in their final stages, signaling a breakthrough in regulatory clarity.

Sharing his insights via X (formerly Twitter), Armstrong emphasized the growing momentum, noting, “While Washington, D.C., might seem gridlocked, the energy toward crypto market structure clarity is unprecedented.” Further, he revealed that he has personally engaged lawmakers on both sides of the aisle to finalize the bill, adding that only about 10% of outstanding issues remain to be resolved.

Central challenges in closing the legislative gap include shaping the regulatory framework for decentralized finance (DeFi) and ensuring stablecoin rewards are protected for users. Armstrong confirmed that draft versions of the bill are actively being exchanged between parties as they work collaboratively to tackle these last hurdles.

Protecting Decentralized Finance and Stablecoins

Armstrong remains steadfast in advocating for decentralized protocols and technologies to remain outside the stringent oversight traditionally applied to centralized institutions. He underlined Coinbase’s stance, stating that attempts to regulate decentralized finance under frameworks suited for traditional banking institutions could stifle innovation and disrupt the growth of blockchain-based solutions.

Moreover, Armstrong criticized major banks for allegedly obstructing crypto users from accessing rewards tied to stablecoin holdings. He described such maneuvers as "cash grabs," warning that they run counter to the increasingly favorable legislative environment for stablecoins. Referring to the recently enacted Genius Act, which solidified the legality of stablecoin rewards, Armstrong cautioned legacy financial institutions against actions that could diminish the progress achieved thus far.

Bridging the Divide Between Crypto and Banking

The Genius Act represents a milestone for stablecoin adoption and rewards, but Armstrong stressed the need to ensure its intent isn’t undermined by traditional financial entities attempting to retain control of the evolving financial landscape. Any resistance from banks could hinder growth and innovation within the crypto industry at a critical time for regulatory development.

The Coinbase CEO’s remarks reflect a broader push for decentralization and financial inclusion. The company has consistently championed the need for decentralized software platforms to foster innovation, autonomy, and trust. Armstrong’s leadership in spearheading conversations with lawmakers showcases the vital role crypto industry advocates play in addressing perceived barriers between blockchain technologies and legacy systems.

A Decisive Moment for U.S. Crypto Regulation

With bipartisan collaboration intensifying and legislators narrowing down the remaining points of contention, the passage of the crypto market structure bill could redefine the future regulatory landscape for digital assets in the United States. This marked turning point comes as lawmakers, industry leaders, and traditional financial stakeholders navigate challenges surrounding fintech innovation, decentralized protocols, and consumer protections.

Armstrong's confidence underscores the growing alignment between regulators and crypto proponents, suggesting that clearer guidelines for trading platforms, custody solutions, and stablecoin management could soon come to fruition. As the industry anxiously awaits the final steps, the assurance of regulatory clarity promises to pave the way for robust growth and innovation within the U.S. crypto ecosystem.