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- Armstrong signals progress in US crypto market reform talks
- Stablecoin reward debate drives renewed negotiations in Washington
- Coinbase continues buying Bitcoin amid legislative uncertainty
Momentum has returned to Washington’s digital asset negotiations as lawmakers and industry leaders revisit stalled market structure legislation. Brian Armstrong said he felt optimistic that we are making progress in the talks.
Speaking at the World Liberty Forum in Mar-a-Lago with Senator Bernie Moreno, Armstrong termed the discussions as positive. In comments posted on X and in an interview with CNBC, Armstrong said negotiators are now aiming for a win, which he called a win for the crypto industry, banks, and American consumers.
Previous versions of the market structure bill created a conflict between conventional financial institutions and digital asset firms. Legislators had suggested reducing the amount of stablecoins in rewards, which banks were more comfortable with to preserve deposit bases. Nevertheless, crypto companies argued that limiting rewards would undermine innovation and reduce consumer benefits.
Armstrong has admitted that Coinbase raised concerns about the previous language. He said that such objections drove the stakeholders back to active negotiations. As a result, talks were again made in a more compromise-oriented manner.
Also Read: BitGo Shares Drop 44% Since IPO, Mizuho Targets $17 with Positive Outlook.
Stablecoin Rewards at the Center of Legislative Debate
The point of contention is whether issuers of stablecoins can pass through the interest on reserve assets to users on a one-to-one basis. The issuers typically maintain short-term deposits on the US Treasuries that yield. This discussion centers on whether consumers are entitled to such a payoff.
As Armstrong argues, permitting rewards would modernize financial services and enhance US competitiveness. He observed that most Americans are unhappy with excessive fees and wasted time in conventional banking. Thus, he claimed that capital offshoring could be adopted by avoiding stablecoin rewards.
Armstrong also mentioned the world trends. China continues to develop its central bank digital currency. In the meantime, offshore stablecoins are beyond the reach of US regulators. According to him, President Donald Trump has underscored the establishment of the digital asset sector in the United States.
Although recent volatility has been significant, Armstrong discounted the idea that Bitcoin is set to fall by 20 percent this year, citing legislative momentum. He referred to market fluctuations as psychological, but not structural. He affirmed that Coinbase will continue buying Bitcoin and will continue buying its own shares when markets are down.
Senator Moreno reiterated the idea of having more explicit rules as he appeared with him. Negotiators are still making amendments to the bill as the negotiations progress.
Also Read: Whale Accumulation Surge Highlights Bitcoin’s Potential Amidst Selling Pressure
