🔥 Banks Block Crypto Rewards! Armstrong Fights Back!

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Coinbase CEO Brian Armstrong has recently taken a stand against major banks attempting to block stablecoin rewards. 🐍💸 The banks, those titans of finance, claim stablecoins are a threat to their fragile empires, but let’s not forget, they’re the ones who’ve been hoarding the wealth while the rest of us scrape by. 🧠

Big banks argue that stablecoins pose a threat to deposits and credit markets. Crypto supporters counter that stablecoins represent only a small fraction of the financial system while providing real benefits to consumers. 🤷‍♂️ Oh, how the mighty fear a little competition! 🚀

Tensions brewing? Let’s explore. 🔥 The banks are throwing a tantrum, trying to crush the tiny spark of innovation that’s lighting up the financial world. 🌋

Armstrong Slams Banks

Armstrong has called out banks for their hypocrisy, saying they are trying to take away people’s ability to earn rewards on stablecoins. Although he is more optimistic than ever about clear crypto rules, he also warned that big banks are trying to intervene and grab another handout, this time by targeting the rewards users earn from holding USDC stablecoins. 🤡

“USDC rewards are law under the GENIUS Act, but banks want to undo them to maintain their monopoly,” he said. 🗣️

I’ve never been more bullish about clear rules for crypto. It’s obvious that market structure is a freight train that’s left the station.

But that hasn’t stopped the big banks from coming for another handout – this time paid by your crypto rewards. They want to undo your right…

– Brian Armstrong (@brian_armstrong) September 29, 2025

Crypto Firms Push Back

Coinbase, along with other crypto firms like Kraken, Gemini, and BitGo, is leading a strong lobbying effort to stop banks from banning crypto rewards. 🛡️ The banks, ever the bullies, are trying to stomp out the little guys, but the crypto crowd isn’t backing down. 🦸‍♂️

This comes as the Bank Policy Institute is pushing to prevent exchanges from offering stablecoin yields, arguing that stablecoins could threaten traditional bank deposits and credit markets. 🧨 The banks are like overgrown toddlers, crying that a few coins might tip the scales. 🤭

The Blockchain Association is also defending the GENIUS Act against big banks trying to roll it back to protect their own interests. It also launched a campaign to make Congress and the public aware of why defending GENIUS matters. 🧠

2/ Today we sent a letter to Congress to defend the GENIUS Act, a bipartisan achievement that ensures the U.S. leads the world in financial.

Why is this law so important and why are the banks going after it?

– Blockchain Association (@BlockchainAssn) September 29, 2025

Emilie Choi, Coinbase’s president and COO, also called out big banks, saying that if they truly cared about consumers, they would focus on creating better products instead of lobbying against companies outperforming them. 🤬

Lawyer John Deaton praised Armstrong for standing up to big banks, calling them “the enemy of the people.” However, he also warned that banks still hold significant influence over many Senators. 🕵️‍♂️

“Stablecoins Don’t Threaten Banks”

Concerns over banks interfering with the GENIUS Act have intensified following a letter from the American Senate Blockchain Association released on Monday. 📜 The banks are so desperate, they’re even writing letters to Congress like over-caffeinated children. 🍵

Led by Senators Tim Scott and Elizabeth Warren, the group urged Congress to act, accusing banks of trying to weaken stablecoin legislation to protect their own business interests. It was pointed out that U.S. bank deposits total over $18 trillion, while the global stablecoin market is just $277 billion, a tiny fraction of the banking industry. 🧮

The letter noted that GENIUS was a bipartisan, carefully negotiated law involving all stakeholders, including banks. It also highlighted that stablecoins are not a risk but an upgrade to a system that has long underserved consumers. 🔄

Bullish Outlook for Crypto

Despite pushback from banks, crypto influencer Zach Humphries believes the trend remains bullish for crypto. With DeFi pushing banks to adapt and regulatory improvements, like the SEC removing outdated rules, the market could continue to rise in Q4 2025, with broader growth and altcoin momentum likely extending into 2026. 📈

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2025-09-30 13:54