Coinbase CEO Urges Banks to Start Competing

Cover image via U.Today Read U.TODAY on Google News The "level playing field" argument Stalled legislation Banning competition Advertisement During his appearance at the World Economic Forum, Coinbase CEO Brian Armstrong took aim at the banking sector’s lobbying efforts. He has told CNBC's Squawk Box that incumbent financial institutions are using regulatory capture to stifle the growth of the stablecoin market. The "level playing field" argument The ability of stablecoin issuers to pass rewards on to consumers is at the heart of the dispute. Armstrong argues that legislative hurdles are being put in place specifically to insulate banks from this competitive pressure. HOT Stories Breaking: Strategy Now Owns 700,000 BTC Morning Crypto Report: $74.68 Million XRP Bull Makes Brutal Mistake, Bitcoin Briefly Hits $0 On Decentralized Exchange, Shiba Inu (SHIB) Delivers 5,407,865% Liquidation Shock: What Happened? Ripple CEO to Go Live in Davos U.Today Crypto Review: XRP's Biggest Price Bounce, Shiba Inu (SHIB) Still Fighting, Is Ethereum (ETH) Eyeing Third $3,500 Breakout? "I think Americans should be able to earn more money on their money," Armstrong said. "Banks should have to compete on a level playing field." Advertisement You Might Also Like Thu, 01/15/2026 - 06:29 ‘Worse Than Status Quo’: Coinbase CEO Rejects Senate Bill By Alex Dovbnya If consumers find bank interest rates lacking compared to stablecoin offerings, the market should dictate the outcome instead of regulation. "If the American people feel like the banks are not paying high enough interest rates and stablecoin rewards can offer them more, then maybe the banks should have to pay higher interest rates to compete," he noted. "I don’t think there should be any protectionism." Advertisement Stalled legislation As reported by U.Today, Coinbase recently pulled support for the high-stakes bill. The boss of the leading US exchange has explained that "pretty serious issues" emerged late in the process. "We saw some draft text midnight on Monday night," Armstrong explained. "Our lawyers started looking at it on Tuesday... We actually felt like we had an obligation to go out and defend our customer's rights and say, 'We have some issues here." he said. Armstrong framed the delay as an opportunity to find a "win-win outcome" with banking leaders. Banning competition Despite the friction, Armstrong noted that Coinbase is already deeply integrated with the traditional financial system, providing infrastructure to "five of the top 20 banks in the world." He attributed the regulatory hostility to their political representatives. "Their lobbying arms and their trade groups are coming in and trying to ban their competition," Armstrong said. "And so to me, you shouldn't be able to ban competition." #Brian Armstrong