US EditionDavos debate turns heated as Coinbase’s Armstrong defends bitcoin and stablecoin yield against central bank criticism
Brian Armstrong argues stablecoin reward yields protect users and foster competition against banks seeking to close a loophole threatening their multitrillion-dollar deposit margins.
- On Tuesday in Davos, Brian Armstrong, CEO of Coinbase, defended users and accused banking interests of trying to ban competition while Coinbase withdrew support for the CLARITY Act last week.
- Banks then launched a last-minute lobbying offensive to insert language into the CLARITY Act and warned in a January 13 letter that deposits were at risk, the American Bankers Association said.
- Despite Fed rate hikes, major banks benefit as the American Bankers Association spent more than $2 million lobbying, and Coinbase works with five of the top 20 banks, which see crypto as an opportunity.
- Shortly, the Senate Banking Committee postponed the CLARITY Act markup as no clear timeline exists, while the White House intervened to resolve disputes between two major donor interest groups.
- Regulators caution financial watchdogs warn stablecoin rewards risk consumers while the CLARITY Act would shift oversight to the CFTC and banking lobbyists seek to close this loophole.
47 Articles
47 Articles
Davos debate turns heated as Coinbase’s Armstrong defends bitcoin and stablecoin yield against central bank criticism
Garlinghouse praised the debate as ‘spirited’ after Armstrong corrected Villeroy’s claim about bitcoin’s issuance, stressing crypto’s challenge to traditional financial power.
Crypto and Big Banks Fight Over Who Gets to Fleece You
Wall Street and the crypto industry are engaged in a legislative battle over which business interests will get to fleece more of their customers’ money, with big banks hoping to close a loophole that allows cryptocurrencies to pay interest to investors.
Brian Armstrong said in Davos that the banking lobby against stablecoin rewards harms consumers.
Coinbase’s Armstrong Optimistic on Crypto Legislation Despite Pulling Support Earlier
Coinbase Global Inc.’s Brian Armstrong still sees a path for the US to pass comprehensive crypto legislation even after helping to derail a bill last week just before it reached a key Senate committee over concerns around a host of issues.
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