Coinbase CEO Brian Armstrong has stated that reopening the GENIUS Act is a red line. The 2025 law created a clear framework for blockchain payments and financial services within the chain. Armstrong said banks are lobbying to change the law to protect their traditional business models. He argued that these efforts are not about safety, but about blocking competition. The comments come amid growing debate over stablecoin regulation in the United States.
GENIUS Act and its purpose
The GENIUS Act was introduced in 2025 to regulate stablecoins in the United States. The law sets requirements for reserves, compliance and consumer protection. It offers private issuers the opportunity to operate under clear rules together with banks. Supporters say it provides regulatory clarity for blockchain finance. Critics have argued that changes could favor banks and limit innovation.
🚨 BRIAN ARMSTRONG SAYS THE REOPENING OF THE GENIUS ACT IS A RED LINE
Coinbase CEO Brian Armstrong Opposes Bank Lobbying to Reopen GENIUS Act; the 2025 law that created the first clear US framework for blockchain-based payments and on-chain financial services.… pic.twitter.com/OoiiE6Gi1l
— CryptosRus (@CryptosR_Us) December 27, 2025
Brian Armstrong said changes could tilt the market in favor of established banks. He warned that restricting stablecoin activity would slow the adoption of blockchain payments. Armstrong emphasized that stablecoins are a core part of the digital financial infrastructure.
Banks and lobbying efforts
Major banks have been pushing for revisions to the GENIUS Act. They are seeking stricter requirements for stablecoin issuers, which will not impact banks. Armstrong said these actions could reduce competition in digital payments. He predicted that banks could support blockchain operations once they see profit potential. Lobbying around stablecoin legislation has increased as adoption grows.
Industry observers note that both banks and crypto companies are investing more in advocacy. This comes as lawmakers review digital asset regulations ahead of the 2026 elections. The debate highlights the growing tension between traditional financial institutions and crypto platforms.
Related reading: GENIUS Act leads to increase in stablecoin adoption, EY survey
Stablecoins in the US financial system
Stablecoins are pegged to the US dollar and are widely used for trading and transfers. They enable cheap, fast and global transactions outside the traditional bank rails. Armstrong said stablecoins are not speculative but are part of the payment infrastructure. Exchanges and fintech companies use them for cross-border settlements and liquidity. Regulators are divided between supporting innovation and monitoring financial stability.
Coinbase has worked with regulators to establish clear guidelines for the crypto market. Armstrong’s statement shows concern about possible changes that could benefit the banks. The company has consistently supported regulated frameworks for long-term growth. The GENIUS Act debate could determine the future of stablecoins in the US
The battle over stablecoin rules continues as lawmakers consider possible changes. Armstrong’s comments show that the crypto sector is willing to defend existing frameworks. The outcome will impact stock exchanges, fintech companies and the wider financial system. Stakeholders are closely watching the discussions to see how the rules evolve.
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