Coinbase CEO Races to Capitol Hill to Block ’Direct Hit’ on Crypto Exchange’s Core Business
Coinbase's top executive made a high-stakes dash to Washington this week—not for a photo op, but to fight what he's calling an existential threat.
The Regulatory Showdown
Forget backroom lobbying. This was a public, urgent maneuver. The CEO positioned himself directly before lawmakers, framing proposed legislation not as nuanced policy but as a targeted strike. The message was clear: this isn't about gentle oversight; it's a move that could cripple a pillar of the U.S. crypto economy.
Why the Sudden Urgency?
The trip signals a shift from defense to offense. Exchanges have long navigated regulatory gray areas, but this perceived 'direct hit' suggests a new, aggressive front has opened. The industry's playbook is being rewritten in real-time, moving from compliance discussions to outright political mobilization.
The Stakes for Crypto
This isn't just a Coinbase problem. The outcome sets a precedent. A rule that takes aim at one giant's business model can be copied and pasted to target the entire sector. It's a test case for whether crypto can find a sustainable foothold within the traditional financial rulebook, or if it's destined for permanent opposition.
The Bottom Line
When the CEO of a publicly-traded company feels compelled to personally storm the Capitol, you know the gloves are off. The episode highlights a brutal truth in fintech: you can build the most elegant digital asset platform, but your most important code is still written by Congress. A cynical take? Perhaps. But in finance, the most innovative technology often loses to the oldest one: politics.
Bankers pressure senators as Trump’s crypto law boosts stablecoin growth
Brian said it made no sense to keep pushing the bill forward when amendments were being considered that would kill reward payouts completely. He said he wanted lawmakers to go back and write something more balanced.
Stablecoins, which are tied to the dollar, have become a major business for companies like Coinbase. They’ve grown fast, especially after the GENIUS Act, signed into law by President Donald TRUMP last year, started rolling out. These rewards are profitable, and people like them. But banks don’t.
Bankers and their lobbyists have been hammering senators from both parties, asking them to ban rewards that look like interest. Their fear is simple: customers will yank their money out of banks that pay close to zero and MOVE it into stablecoins that actually give returns.
If that happens, banks lose deposits. That hits their ability to give loans, especially to small businesses using local lenders.
One draft of the bill tried to compromise by banning yield but allowing other kinds of rewards, like ones tied to spending. But some senators weren’t having it. They were ready to vote on a full ban of all stablecoin rewards, not just yield. Brian didn’t want to sit back and watch.
The crypto industry was the biggest corporate donor in the 2023-2024 election cycle. Coinbase gave $1 million to Trump’s inauguration and is helping fund his WHITE House ballroom project.
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