The post GENIUS Act Under Fire: Coinbase CEO Warns Banks Against Reopening Stablecoin Law appeared on BitcoinEthereumNews.com.

TLDR Brian Armstrong says reopening the GENIUS Act would weaken competition and delay blockchain-based payment adoption Bank lobbying targets stablecoin reward structures that challenge traditional deposit and yield economics The GENIUS Act sets strict reserve, disclosure, and consumer protection rules for U.S. payment stablecoins Industry leaders expect banks to adopt blockchain rails once revenue opportunities become clear. GENIUS Act red line tensions escalated after Coinbase CEO Brian Armstrong accused banks of lobbying to weaken stablecoin rules.  The dispute reflects a broader clash between traditional banking incentives and blockchain-based financial infrastructure. Coinbase Pushes Back as Banks Challenge Stablecoin Framework Brian Armstrong publicly stated that reopening the GENIUS Act would cross a red line for the crypto industry. He described bank lobbying as an effort to slow blockchain adoption.  Armstrong argued the push is not rooted in safety concerns. Instead, he framed it as resistance to competition from on-chain financial services. Blockchain rails, he said, threaten established banking revenue models. He further predicted banks would eventually reverse their position. Armstrong suggested profit incentives would drive banks to support blockchain infrastructure. That shift, he noted, would mirror past technology transitions. Exactly – I’m actually impressed the banks can lobby for this with a straight face and not get kicked out of senator’s offices. It takes some serious mental gymnastics. We won’t let anyone reopen GENIUS. Red line issue for us. And will keep advocating for our customers and the… https://t.co/6EfF2oBn5A — Brian Armstrong (@brian_armstrong) December 26, 2025 The post followed growing online discussion around stablecoin regulation. Several crypto-native firms echoed concerns about regulatory capture. Messaging from the sector appeared coordinated and confident. Armstrong’s comments emphasized enforcement over renegotiation. The law, in his view, represents settled ground. Any attempt to reopen it risks destabilizing regulatory clarity. This stance positions the GENIUS Act as a…

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Filed under: News - @ December 27, 2025 10:26 pm