As the U.S. Congress continues to wrestle with stablecoin legislation, Coinbase CEO Brian Armstrong has stepped forward with strong criticism of the proposed GENIUS Act. In a pointed statement shared on X (formerly Twitter), Armstrong argued that the current regulatory framework risks stifling innovation and unfairly restricts stablecoin issuers from offering interest-bearing products to users.
Congress has a real opportunity this week to advance stablecoin and market structure legislation. We strongly support the Senate starting debate on the GENIUS Act — and we need 60 votes to get there. We also welcome House efforts to build on FIT21’s momentum. Both chambers need…
— Brian Armstrong (@brian_armstrong) May 6, 2025
GENIUS and STABLE Acts Under Fire
Armstrong’s critique primarily targets the GENIUS Act, but also includes calls for changes to the House’s STABLE Act. Both pieces of legislation aim to bring oversight to the growing stablecoin market—a segment of crypto assets pegged to traditional currencies like the U.S. dollar. However, Armstrong contends that the bills, in their current form, would significantly limit what stablecoin issuers can offer.
“Congress has a real opportunity this week to advance stablecoin and market structure legislation,” Armstrong wrote, emphasizing the urgency for revisions. He argues that prohibiting issuers from paying interest not only hinders innovation but also denies users potential financial benefits akin to those offered by traditional savings accounts.
Crypto Innovation at Risk
The Coinbase chief’s remarks reflect broader tensions within the crypto industry, as developers and investors alike push back against what they perceive as overly restrictive oversight. The debate comes at a time when the U.S. is lagging behind other jurisdictions, such as the European Union, which have made more headway in crafting clear digital asset policies.
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Armstrong’s push for reform follows Coinbase’s recent amicus brief opposing heightened IRS surveillance of crypto transactions, marking the company’s broader strategy to advocate for regulatory clarity and fairness. His comments underscore a critical moment for U.S. crypto policy as lawmakers weigh the future of stablecoins—digital assets that play an increasingly vital role in decentralized finance.
The Road Ahead for Stablecoin Legislation
As Congress revisits the GENIUS and STABLE Acts, the crypto industry will be watching closely. Armstrong’s call to action puts pressure on lawmakers to balance consumer protection with technological advancement. Whether Congress will revise these bills in favor of a more innovation-friendly environment remains to be seen, but the debate signals a turning point for the future of stablecoins in the U.S.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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