Coinbase CEO Predicts U.S. Crypto Market Bill Passage by Year’s End Amid Partial Government Shutdown

Coinbase CEO Brian Armstrong has made a compelling case for the imminent passage of a much-anticipated U.S. crypto market structure bill before the year closes. His remarks come at a tumultuous time, as the federal government shutdown stretches into its 34th day, creating an urgent need for clarity in cryptocurrency regulation. Despite these governmental challenges, Armstrong remains optimistic, citing a burgeoning bipartisan consensus in Washington, aimed at safeguarding innovation while laying down clear regulatory frameworks.

Currently, Armstrong has been actively engaged in discussions on Capitol Hill, noting an impressive alignment where both Senate Democrats and Republicans find themselves “nearly 91% in agreement” on a cohesive market framework. This framework aims to bring transparency to the trading, custody, and stablecoin operations in the crypto sphere. Armstrong, addressing a gathering, emphasized that these negotiations represent the most cohesive and close-knit efforts at U.S. crypto legislation seen to date.

In a recent post on social media platform X, Armstrong expressed his enthusiasm about the progressing talks, stating, “Momentum for market structure clarity is stronger than ever, despite Washington’s gridlock. Having met with leaders from both major parties, we’re close to reaching our goal.” He revealed that both parties are vigorously working to reconcile the remaining differences, which stand at a mere 9%, signaling a nearing consensus.

The positive atmosphere echoed by Armstrong was mirrored by senators earlier this week during their commitment to advance the Crypto Market Structure Bill. The bill is currently undergoing the final phases of drafting, with both parties exchanging suggestions to bridge the last 9% of gaps. Armstrong pointed out that the crucial sticking points lie in specific areas: the regulation of decentralized finance (DeFi) and the protection of stablecoin rewards for users.

Coinbase has been vocal about ensuring that decentralized protocols and software do not fall under the rigid oversight designed for traditional, centralized financial entities. Armstrong has raised concerns over attempts by major banking institutions to sideline crypto advancement. This follows the ratification of the Genius Act which officially recognizes the legal standing of stablecoin-related incentives. Armstrong strongly argued against traditional financial entities’ attempts to limit cryptocurrency users’ ability to earn genuine rewards.

Armstrong anticipates a breakthrough with the Senate committee’s approval before the Thanksgiving holiday. Despite the ongoing federal shutdown, this development would open the door for a potential full Senate vote before year’s end. The proposed timeline is also being closely watched ahead of the impending Federal Reserve meeting scheduled for the end of October. This regulatory advancement is seen as vital in balancing innovation with accountability, working under the premise that firms like Coinbase should operate within a well-defined set of rules, ensuring market integrity.

As the debate intensifies, Paul Grewal, Coinbase’s Chief Legal Officer, has also articulated the company’s stance on social media. “Want to ensure user safety? Focus regulatory efforts on centralized exchanges like ours, rather than decentralized finance protocols,” he asserted. Grewal’s comments further illuminate Coinbase’s commitment to supporting legislation that differentiates centralized exchange regulation from software development and innovation in DeFi frameworks.

With the potential passage of the market structure bill on the horizon, the crypto industry is poised for a transformative phase. Stakeholders anticipate that the new regulatory environment will invigorate investor confidence while paving the way for the responsible growth of the digital currency ecosystem. As the year draws to a close, all eyes remain on Capitol Hill, awaiting decisive action that could redefine the landscape of crypto regulation in the United States.