Banking associations stall the adoption of the bill
Coinbase CEO Brian Armstrong said that updated market structure legislation could offer banks additional benefits to get them on board with allowing stablecoin rewards.
According to Armstrong, banking trade associations are responsible for the impasse in the adoption of this bill. He believes that banks are trying to use their influence to slow down changes that could harm their current business model.
Changes in market structure legislation could help integrate cryptocurrencies and stablecoins into the traditional financial system. However, banks fear that this will lead to a decrease in their fee and margin revenues, as well as create competition from new fintech players.
At the same time, Armstrong believes that the adoption of this bill will bring certain benefits to banks, such as expanding their customer base and new revenue opportunities. Therefore, he calls on banks to take a more constructive stance and actively participate in the discussion of these changes.
Expert opinion
Legislative initiatives aimed at integrating cryptocurrencies into the traditional financial system certainly meet resistance from the banking sector. Banks fear losing a portion of their profits and influence, so they lobby interests, slowing down the adoption of necessary changes.
Nevertheless, adaptation to the new market realities is an inevitable process. Banks should take a more open position and seek mutually beneficial solutions that will allow them to maintain their positions, but at the same time provide an opportunity to implement innovative fintech solutions. Only this approach will allow them to remain competitive in the long run.