Key Insights
- Brian Armstrong opposes bank lobbying to change the GENIUS Act.
- Banks aim to protect their business models from blockchain competition.
- Armstrong believes banks will eventually adopt blockchain technology.
- A clash between traditional banks and blockchain finance may emerge.
Coinbase CEO Brian Armstrong is strongly opposing efforts by banks to reopen the GENIUS Act, a 2025 law that established the first clear U.S. framework for blockchain-based payments and on-chain financial services. Armstrong claims that banks are lobbying to undo parts of the law to slow down blockchain adoption, thereby protecting their own business models. He emphasizes that this dispute is not about safety but about blocking competition.
Banks Lobby to Reverse Blockchain-Friendly Legislation
The GENIUS Act was a groundbreaking piece of legislation that provided the first clear regulatory framework for blockchain payments in the U.S. It has been viewed as an essential step towards fostering innovation in the blockchain space. However, banks have lobbied for changes to the law, hoping to limit blockchain’s expansion and influence.
🚨 BRIAN ARMSTRONG SAYS REOPENING THE GENIUS ACT IS A RED LINE
Coinbase CEO Brian Armstrong is pushing back against bank lobbying to reopen the GENIUS Act ; the 2025 law that created the first clear U.S. framework for blockchain-based payments and on-chain financial services.… pic.twitter.com/OoiiE6Gi1l
— CryptosRus (@CryptosR_Us) December 27, 2025
Brian Armstrong has spoken out against these efforts, arguing that the banking sector’s opposition is not based on concerns for security but on a desire to protect their current business practices. He believes that the existing banking model may feel threatened by the blockchain-based financial services that the GENIUS Act encourages.
Armstrong Predicts Banks Will Eventually Embrace Blockchain
Armstrong is confident that banks will eventually recognize the profitability of operating on blockchain rails rather than resisting them. He suggests that the pushback against blockchain adoption is temporary and will shift once banks see the advantages of integrating blockchain technology into their operations.
He predicts that over time, they will begin to see blockchain as an opportunity rather than a threat, much like how many businesses initially resisted the internet before embracing it.
Potential Clash Between Traditional Banks & Blockchain Finance
The ongoing conflict between traditional banking institutions and blockchain-based financial systems could lead to a larger battle for dominance in the financial sector. As blockchain technology continues to evolve, a shift in financial services towards decentralized and blockchain-powered systems seems likely.Â
Armstrong’s comments suggest that this battle is just beginning, and the future of the financial industry may depend on how both sectors adapt. In the coming years, it remains to be seen whether the banking industry will adjust to the blockchain revolution or if it will continue to push back against it.
