Coinbase CEO Brian Armstrong said he will discuss the market structure legislation being prepared in the US for crypto assets with top executives from the banking sector at the World Economic Forum. These meetings, taking place during the forum in Davos, Switzerland, aim to contribute to resolving ongoing debates, particularly regarding stablecoins.
In a video message shared on the X platform, Armstrong emphasized that Coinbase will continue to actively work on the draft legislation. He stated that they will meet with bank CEOs in Davos to address remaining issues, saying, "We will discuss ways to make this regulation a 'win-win' for everyone." According to Armstrong, stablecoins offer a level playing field, creating new opportunities for both crypto companies and traditional banks.
Coinbase withdrew US support
Coinbase withdrew its support in the US last week after reviewing the updated text of the bill in the US Senate. In the updated text, the adoption of an approach that prohibits crypto companies from paying interest or returns to users who only hold stablecoin balances became one of the exchange's main points of objection. Armstrong stated that they aim to contribute to the progress of the legislative process by conveying the results of the meetings with bankers in Davos to the Senate and the US administration. This debate surrounding stablecoins is also seen as a reflection of the tension between the crypto sector and traditional banking. The banking sector argues that crypto platforms offering returns on stablecoin balances could lead to deposit flight from savings accounts and pose a risk to financial stability. The Senate's draft text is in line with this view. While the text prohibits passive returns based solely on holding stablecoins, it allows rewards tied to activities such as trading, staking, or providing liquidity. Coinbase's backtracking had a tangible impact on the legislative process. Following the exchange's withdrawal of support, the U.S. Senate Banking Committee postponed its expected review session and did not announce a new date. Despite this, Coinbase argues that it will continue to work with lawmakers to prevent the regulation from being completely shelved, suggesting that revising the text to create a clear and workable framework is possible. The company believes that the law could provide the long-awaited regulatory clarity for digital assets.
Armstrong's Davos agenda is not limited to regulatory discussions in the US. The Coinbase CEO stated that during the forum, he will also discuss with world leaders how crypto assets can update traditional financial systems and how tokenization can make access to capital markets more democratic. Tokenization has recently gained attention in both the private and public sectors.
On the other hand, contacts in Davos are not limited to the crypto world. Reuters reported that US President Donald Trump is also attending the forum and is expected to hold a series of meetings with global investors. However, it is not clear whether digital assets are on Trump's agenda. The escalating tension between the US and the EU over Greenland is currently one of the main topics of Davos.
