Coinbase CEO Brian Armstrong and Senator Bernie Moreno (R-Ohio), one of the lead negotiators in Washington and a former crypto entrepreneur himself, sat down at the World Liberty Forum in Mar-a-Lago to lay out exactly where things stand.

After years of regulatory uncertainty that pushed crypto activity offshore and left American companies operating in legal grey areas, the industry is now closer than ever to getting the clear legislative framework it has been pushing for.

The bottom line of the interview highlights that a deal is close, the White House is all-in, and the target is April.

Two Bills, One Goal: Understanding the Crypto Legislation Pipeline

There are actually two separate bills being discussed in the conversation:

• The GENIUS Act: Specifically the stablecoin bill. This is what the rewards/yield debate is about. President Trump actually signed it into law on July 18, 2025.

• The Digital Asset Market Clarity Act (CLARITY Act): The broader market structure bill covering crypto assets more generally.

GENIUS Act Explained: What the First U.S. Stablecoin Law Actually Does

The GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, establishes the first federal regulatory framework for payment stablecoins in the United States.

The legislation sets clear rules for how digital dollars must be backed, supervised, and disclosed, aiming to formalize stablecoins within the U.S. financial system. 

Here's what the law does and why it matters:

• Federal framework: Creates the first nationwide regulatory structure specifically for payment stablecoins

• 1:1 Reserve requirement: Stablecoins must be fully backed by U.S. dollars or highly liquid assets such as short-term U.S. Treasuries

• Mandatory oversight: Issuers are subject to bank-like supervision and regulatory standards

• Monthly transparency: Companies must publish regular public reports detailing reserve composition

• Creditor priority: In the event of insolvency, stablecoin holders receive priority over other creditors

• No yield provision: The final version prohibits stablecoin issuers from offering interest or rewards to holders, the same stablecoin rewards debate referenced in the Armstrong–Moreno discussion

The Central Fight: Stablecoin Rewards

At the centre of the debate is a simple but consequential question: should digital dollars be allowed to pay interest?

• Core dispute: Lawmakers are divided over whether stablecoin issuers can offer rewards or yield to holders

• Bank opposition: Traditional banks see yield-bearing stablecoins as a direct threat to their deposit base

• Consumer framing: Armstrong and Moreno argue this is one of the clearest consumer wins available

• Public frustration: Armstrong cites polling showing 87% of Americans feel the current financial system doesn't work for them

• Competition for cash: Stablecoin rewards would force real competition, allowing people to earn meaningful yield on money sitting in their wallet or account

• System pressure: More competition could mean fewer fees, faster settlement, and more equal access to financial services

Stablecoin Yields: How the Interest Payment Debate Shaped the Final Law

The yield fight didn't stay in the negotiating room, it spilled into Congress, forced a dramatic withdrawal, and ultimately determined what the GENIUS Act became.

• The bank argument: Traditional financial institutions warned that yield-bearing stablecoins would pull deposits away from community banks and destabilize the broader banking system

• The crypto counter: Armstrong and others argued that restricting yields would hand the advantage to offshore, unregulated competitors already paying interest, accelerating the very capital flight the law was meant to prevent

• The GENIUS Act compromise: The final law bars stablecoin issuers from paying direct interest to holders, but stops short of prohibiting third-party platforms from offering their own rewards programs, leaving a meaningful door open for exchanges like Coinbase

• Coinbase's role in the fight: The exchange withdrew its support ahead of a Senate Banking Committee vote, citing yields as a central concern, a move that reshuffled the entire negotiation and brought all parties back to the table

The Global Stakes: China, Offshore Stablecoins, and the Dollar

The debate extends far beyond Washington, a global race for digital dollar dominance is accelerating.

• China moving first: China is rolling out a central bank digital currency that pays interest

• Offshore growth: Unregulated offshore stablecoins already exceed those operating within the U.S. regulatory framework

• Repatriation goal: President Trump has said he wants that activity brought back under U.S. jurisdiction

• Legislative warning: Armstrong argues that without stablecoin rewards included in legislation, that capital will not return

• Dollar strength argument: Moreno contends stablecoins wouldn't weaken the dollar, they would expand global dollarization

• Treasury demand impact: Increased stablecoin adoption could drive significant demand for U.S. Treasuries, potentially lowering America's borrowing costs by hundreds of billions annually

Did Coinbase Block the Bill?

Amid claims that Coinbase stalled progress, Armstrong offered a different account, one on negotiation:

• Pushing back: Armstrong rejected the idea that Coinbase "blocked" the bill

• Draft concerns: He said the company raised substantive issues with the existing language, prompting renewed negotiations

• Back to the table: All sides are now re-engaged, working toward a revised framework

• Three-way win: Armstrong believes the outcome can benefit crypto firms, banks, and consumers alike

• White House involvement: Armstrong said the administration, with David Sachs named as crypto czar, appears to be meeting daily on the legislation, though he acknowledged he couldn't confirm this directly

Bitcoin Is Down: Does It Matter?

Despite Bitcoin's rough start to 2026, Coinbase leadership is still leaning in:

• Calm on the drawdown: Armstrong dismissed the decline as short-term volatility

• Buying the dip: Coinbase is accumulating Bitcoin and repurchasing its own stock

• Long-term thesis: Bitcoin remains the best-performing asset of the past decade

• Stronger than gold?: Senator Moreno said he would choose Bitcoin over gold if allocating capital today

• Zooming out: Both emphasized that temporary price swings are noise, the real story is the infrastructure being built underneath

What About Quantum Computing Breaking Blockchain?

Armstrong dismissed fears about quantum computing breaking blockchain as simply "not true." He pointed to Coinbase's quantum advisory council already coordinating with major blockchains on a post-quantum cryptography upgrade path. Quantum is a solvable problem, he said and Coinbase is already working on it.

Prediction Markets: The CFTC Takes On the States

A major regulatory shift could reshape the future of U.S. prediction markets and directly impact Coinbase's long-term expansion strategy.

• CFTC pushback: The agency is forcefully opposing state attempts to classify prediction markets as gambling

• Federal authority: Commissioner Mike Selig stated that the CFTC holds exclusive federal jurisdiction over these contracts

• Legal showdown ahead: Legal challenges from states are expected and could escalate to the Supreme Court

• Confidence in the law: Armstrong believes the statutory framework clearly favors the CFTC's authority

• Strategic implications for Coinbase: As Coinbase builds the "Everything Exchange" crypto, equities, commodities, and prediction markets, regulatory clarity is critical to its expansion

One Disclosure Worth Noting

Coinbase donated to Senator Moreno's super PAC. Moreno's response was characteristically direct, they agreed with him, not the other way around.