Coinbase CEO Brian Armstrong says he’s taking Washington’s stalled crypto regulation debate to Davos this week, hoping conversations with bank leaders can help unlock progress on a sweeping US crypto bill.
In a video posted on X, Armstrong said Coinbase will stay actively involved during the World Economic Forum, using the gathering to speak directly with banking executives and push toward a version of the legislation the industry can support.
“We’re going to continue to work on the market structure legislation, and meet with some of the bank CEOs to figure out how we can make this a win-win,” Armstrong said.
He argued that stablecoins, in particular, should create opportunities for both crypto firms and traditional lenders — not pit them against each other. Armstrong said he plans to take feedback from those discussions back to lawmakers and the administration in an effort to get the bill back on track.
A Fight Over Who Regulates Crypto
At the heart of the legislation is a long-running question: when should a digital token be treated as a security, and when should it fall under commodities rules? The bill would give the Commodity Futures Trading Commission oversight of spot crypto markets, a shift that major US exchanges have pushed for years.
But Coinbase recently pulled its support after reviewing the latest draft. In a post last week, Armstrong said the company “can’t support the bill as written,” citing a range of concerns.
According to Armstrong, the draft could amount to a de facto ban on tokenized equities, impose new restrictions on decentralized finance and privacy tools, and weaken the CFTC in ways that leave crypto innovation vulnerable to tougher enforcement by the Securities and Exchange Commission.
Talks Paused as Lawmakers Look for Compromise
Coinbase’s move came just as the Senate Banking Committee was preparing to mark up the bill. That session has since been delayed as bipartisan talks continue, with committee chair Tim Scott saying negotiations with industry stakeholders are still underway.
One of the most contentious issues is stablecoin rewards. Banking groups are pushing to ensure crypto firms can’t mimic interest-bearing deposits, while crypto advocates warn that an overly broad ban would limit product innovation.
The current draft would prohibit paying interest simply for holding a stablecoin, but still allow rewards tied to activities like payments or loyalty programmes. Disclosure requirements would be set later by the SEC and the CFTC.
Beyond the details of this bill, Armstrong says he plans to use Davos to make a broader case: that crypto infrastructure and tokenization can modernise how markets work and expand access to capital, rather than threaten the existing financial system.
For Armstrong, the message is simple — without clearer rules, the US risks falling behind just as global interest in digital assets continues to grow.
