Coinbase CEO Brian Armstrong Slams Banks Over USDC Rewards Ban Attempt

Coinbase CEO Brian Armstrong has sparked debate after criticizing major U.S. banks for trying to block cryptocurrency exchanges from offering rewards in Circle’s USDC stablecoin. In a series of posts on X, Armstrong accused banks of attempting to preserve their dominance over deposits by targeting crypto rewards programs. He urged users to resist these efforts, warning that financial institutions want to undo consumer rights established under the GENIUS Act.

According to Armstrong, banks are enjoying record-breaking profit margins yet still lobbying to restrict competition from digital assets. He argued that any attempt to bail out large banks at the expense of crypto users would be a mistake, both economically and politically. “That would be foolish politically because 50 million Americans have now used crypto,” Armstrong emphasized.

Coinbase, along with other major crypto firms like Kraken, Gemini, and BitGo, is leading a strong lobbying push to ensure stablecoin rewards remain legal. The Blockchain Association has also stepped in, launching a campaign to safeguard the GENIUS Act from banking industry influence. The group claims that stablecoins strengthen the financial system by enabling instant settlement and lowering transaction costs.

At the center of the battle is the Bank Policy Institute, which has been pressuring regulators to prevent exchanges from offering stablecoin yields. Banks argue that stablecoins could threaten traditional deposits and disrupt credit markets. However, pro-crypto advocates counter that stablecoins improve financial efficiency rather than undermine stability.

The outcome of this fight could shape the future of stablecoin adoption in the U.S. With crypto usage reaching tens of millions of Americans, the political and financial stakes are high. Armstrong’s message is clear: banks should not be allowed to block innovation or strip consumers of opportunities to earn rewards in digital assets.