- Armstrong said banning stablecoin rewards would help Coinbase profits but disadvantage customers.
- He warned limits could weaken US stablecoin competitiveness and consumer choice globally.
- Coinbase remains engaged in White House talks seeking clear market structure rules.
Coinbase CEO Brian Armstrong said a proposed crypto rewards ban could raise company profits but harm users and U.S. competitiveness. He made the remarks this week while responding to renewed regulatory debate in Washington. Armstrong addressed ongoing talks involving policymakers, banks, and crypto firms, explaining why Coinbase continues to oppose limits on stablecoin rewards.
Rewards Ban Debate and Coinbase’s Position
According to Brian Armstrong, a ban on crypto rewards would reduce payouts to customers holding USDC. He said this change would ironically benefit Coinbase financially. However, he stressed that such an outcome would disadvantage users.
Armstrong added that rewards help regulated stablecoins remain competitive globally. He said preserving these features supports consumer choice. Notably, he emphasized that Coinbase prefers customers to receive rewards rather than retain those funds internally.
This response followed an earlier statement about regulatory negotiations. Armstrong said Coinbase remains committed to advocating for crypto users. He described rewards as a core consumer benefit that regulators should protect.
Market Structure Talks and GENIUS Act Concerns
Armstrong said Coinbase continues pushing for a clear crypto market framework. He explained that the company seeks alignment with the President’s crypto agenda. At the same time, it aims to address banking sector concerns.
He noted that Coinbase supported market structure reform before it gained broad attention. Armstrong said the company remains engaged despite renewed debate. He pointed to the GENIUS Act, passed six months ago, which he said now faces re-litigation.
According to Armstrong, this uncertainty directly affects Coinbase customers. He said changing interpretations create operational challenges. As a result, Coinbase continues advocating for regulatory clarity.
White House Meetings and Industry Alignment
Armstrong confirmed that Coinbase attended two recent White House meetings on crypto policy. He said discussions included banks and crypto firms. He described the talks as constructive.
He added that the broader crypto industry remains aligned. Armstrong said all parties aim for a “win-win-win” outcome. This includes clarity for firms, safeguards for banks, and benefits for users.
He reiterated that Coinbase will stay at the table. Armstrong said the company will continue focusing on consumer rewards and regulated stablecoins as talks progress.