Coinbase CEO Brian Armstrong recently escalated the US crypto regulatory battle to the level of national competition. He stated that if Washington continues to delay legislation on the crypto market and stablecoins, it could weaken the US's dominant position in the global financial system and give more room to issuers outside of US regulation, such as China.
Linking legislation to US-China competition
Armstrong has recently emphasized on multiple occasions that the competition between the United States and China is not just about manufacturing or technology, but also involves digital assets and payment systems. He stated that the competition itself may prompt the United States to re-examine its policy direction in order to avoid losing its advantage in the new round of financial infrastructure reforms.
According to him, if the US imposes overly strict restrictions on the crypto market, related business and innovation may continue to flow overseas. This would benefit not only offshore stablecoin issuers but also China's ongoing central bank digital currency project.
Stablecoin bill becomes a focal point of debate
Currently, the US Congress is still debating the digital asset market structure bill and rules related to stablecoins. Armstrong is attempting to expand this discussion from industry demands to the issue of US financial leadership.
He particularly opposes overly strict restrictions on interest-bearing stablecoins. Armstrong believes that such restrictions will not eliminate market demand for yield products, but will only push demand towards alternatives outside of US regulation.
The divide between the banking sector and Coinbase is widening.
The report mentions that disagreements surrounding crypto legislation have further brought the conflict between crypto companies and large banks into the open. JPMorgan Chase CEO Jamie Dimon recently criticized Armstrong with strong language.
Armstrong accused large banks of trying to use regulation to weaken competitors in the crypto industry instead of competing by improving their products. Coinbase believes that open crypto networks and stablecoins can improve payment efficiency, while the banking industry warns that the associated risks could increase if regulations are relaxed.
Trump's meeting raises political weight
The report also stated that US President Trump met with Armstrong and subsequently publicly urged members of Congress to push for crypto legislation. This move indicates that Coinbase is moving closer to the current administration's digital asset agenda.
Against this backdrop, Armstrong has framed crypto regulation as part of the US-China financial and technological competition, attempting to garner broader political support for related legislation. However, critics argue that this approach could blur the lines between public interest and corporate lobbying objectives.
Additional information:The report also mentioned that Coinbase has clashed with the U.S. Securities and Exchange Commission multiple times, with the exchange long requesting regulators and Congress to provide clearer rules for digital assets.
