Coinbase CEO: Big banks are trying to 'kill the competition' through crypto regulation
Coinbase CEO Brian Armstrong revealed why the cryptocurrency giant chose to withdraw support for a key Senate crypto bill during an interview on "Mornings with Maria."
"It just felt deeply unfair to me that one industry [banks] would come in and get to do regulatory capture to ban their competition," Armstrong told FOX Business. "They should have to compete on the level playing field, and I genuinely believe that."
Armstrong told FOX Business anchor Maria Bartiromo "much of the industry" shares Coinbase’s concerns with the legislation, saying he felt an obligation to stand up for customers whom he says are getting a worse deal from banks through the bill’s provisions.
"I declined to opine on the exact — whether the hearing, the markup should happen or not. … But I did feel like I had to speak up on behalf of our customers and all Americans here."
As the head of a cryptocurrency giant, Armstrong’s decision to pull Coinbase’s backing from the bill sent ripples through Capitol Hill.
At the center of the dispute is a disagreement between banks and crypto firms over whether stablecoin holders should receive reward payments.
Despite the strife, Armstrong noted that some banks have taken a reasonable approach to digital assets.
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"Many of these banks are actually very smart," he explained. "The commercial side of the bank is leaning into crypto. They're actually doing deals with Coinbase. We're powering a lot of crypto and stablecoin infrastructure for them on the commercial side."
The CEO accused the banks’ lobbying operations of trying to restrict competitors but expressed optimism that lawmakers could still resolve the bill’s outstanding issues.
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"And then their lobbying arm comes to D.C. and thinks of it as very zero-sum and is trying to kill the competition," Armstrong said. "So, I suspect, like many things, if we get the principles in the room, we can actually get this figured out and make a good deal."
Tune in to watch Maria Bartiromo's full interview with Armstrong when it airs Friday on "Mornings with Maria" at 8:30 a.m. ET on FOX Business.