Brian Armstrong: The main reason for the deadlock in the Market Structure Act lies with the banking association, not the banks themselves.

Coinbase CEO Brian Armstrong stated that the main reason for the deadlock in crypto market structure legislation negotiations lies with trade groups, not individual banking institutions. Speaking at the World Liberty Forum in Florida, he pointed out that some industry associations view the crypto industry with a "zero-sum mentality," believing that for banks to win, the crypto industry must lose, thus hindering the bill's progress. One current point of contention is whether to allow stablecoin rewards. After the Senate Banking Committee's push for market structure legislation stalled, banking representatives insisted on limiting stablecoin reward provisions in multiple meetings organized by the White House. The next round of related meetings is expected to be held this week. Armstrong stated that he anticipates a compromise may emerge in the future, offering banks new policy benefits in exchange for support of the bill. He also emphasized that small and medium-sized banks are not truly concerned about funds flowing to stablecoin issuers, but rather about deposits flowing to larger banking institutions. Meanwhile, several large banks have already begun to develop crypto businesses, and Coinbase is currently providing crypto infrastructure support to "five of the world's five largest banks." Armstrong believes that now that compliant stablecoin products with incentive mechanisms have emerged in the United States, the industry and regulators need to decide whether to view them as an opportunity or a threat.