Coinbase CEO Brian Armstrong said he does not intend to halt work on the U.S. market structure bill for the crypto industry, despite a public split with its current version. This week, he plans to discuss the document with the heads of major banks at the World Economic Forum in Davos.
This is an attempt to restart the dialogue between crypto companies and the traditional financial sector after a draft law appeared in the U.S. Senate that effectively bans crypto platforms from paying yield on unused stablecoin balances.
Davos as a Platform for Compromise
Speaking in a video address published on X, Armstrong confirmed that he is using the World Economic Forum as a venue for informal talks with bank leaders and regulatory representatives.
According to him, the goal of the meetings is to find a formula in which digital asset regulation becomes “a win for all sides”: both for the crypto industry and for traditional finance.
Armstrong emphasized that stablecoins should not be seen as a threat to the banking system. On the contrary, with proper rules, they can expand financial infrastructure and create a level playing field for banks and crypto companies.
Why Coinbase Withdrew Support for the Bill
Last week, Coinbase publicly withdrew support for the digital asset market structure bill after reviewing the updated text. The main sticking point was a provision that bans crypto platforms from paying yield “for simply holding” stablecoins.
According to the draft, payouts are only possible as part of active operations—for example, through staking, providing liquidity, or participating in transactions. This logic fully aligns with the position of the banking lobby, which fears an outflow of deposits from traditional savings products.
Armstrong, however, insists that such a ban artificially limits innovation and effectively entrenches banks’ advantages, depriving companies of part of their business model.
Banks Against Yield in Crypto
Financial institutions openly oppose the idea that crypto platforms can pay yield on stablecoins comparable to banking products. Their argument is simple: if users can earn yield in digital dollars without bank accounts, it will create systemic risks and intensify competition for liquidity.
According to market participants, this position formed the basis of the bill’s tough version, which provoked a sharp reaction from Coinbase and several other players.
Consequences for the Bill
Coinbase’s refusal to support the document has already had practical consequences. The Senate Banking Committee was forced to postpone a scheduled meeting to review and amend the bill. A new date has not yet been announced.
Nevertheless, Coinbase says it is not leaving the process entirely. The company hopes to revise the text and bring it back on track through dialogue with banks and lawmakers.
Broader Context: Geopolitics and Crypto
The Davos forum, held from January 19 to 23, is traditionally used as a venue for behind-the-scenes negotiations at the highest level. This year, Donald Trump is also participating in the event and, according to Reuters, plans to meet with major international investors.
It is still unclear whether the cryptocurrency agenda will be addressed directly. Much of the world’s political attention is currently focused on escalating disputes between the U.S. and the EU over Greenland, pushing financial innovation into the background.
Why This Matters for the Market
The story with Davos shows that the fight for crypto market regulation has moved beyond Congress. Now, key decisions are being shaped at the intersection of the interests of banks, technology companies, and global political elites.
If no compromise is found, the U.S. risks either stalling the development of crypto infrastructure or pushing some innovations outside its jurisdiction. This is exactly what Armstrong says he is trying to avoid by continuing the dialogue even after the public conflict over the bill.
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