Brian Armstrong, the chief executive of Coinbase, is set to meet with senior banking executives this week to discuss the future of U.S. crypto regulation, as debate over the stalled market structure bill intensifies.
The discussions will take place on the sidelines of the World Economic Forum in Davos, where global political and financial leaders are gathering from Jan. 19 to 23. Armstrong said the goal is to find common ground with traditional banks after Coinbase withdrew its support for the latest draft of the crypto market structure legislation.
Coinbase pulls support for revised bill
Last week, Coinbase publicly stepped back from backing a revised version of the CLARITY Act, which was introduced by the Senate Banking Committee. Armstrong said he reviewed the 182-page draft just days before it was scheduled for a markup vote and concluded that it was “materially worse than the current status quo.”
According to Armstrong, the revised proposal would restrict core crypto activities and slow innovation across the industry. One of the most contentious issues was the treatment of stablecoin yields, which some banks argue could pull deposits away from traditional financial institutions.
Armstrong countered that limiting stablecoin functionality would unfairly advantage legacy banks and hinder competition, rather than creating a balanced regulatory framework.
Regulatory power and data access concerns
Beyond stablecoins, Armstrong also raised concerns about provisions that could expand government access to financial data and shift regulatory authority away from the Commodity Futures Trading Commission toward the Securities and Exchange Commission. He warned that such changes could increase uncertainty for crypto companies operating in the U.S.
Coinbase’s withdrawal had immediate political consequences. With one of the industry’s largest lobbyists stepping back, the Senate’s planned markup session was postponed indefinitely.
Davos becomes the new negotiation table
With progress in Washington stalled, Armstrong is now turning to Davos as a neutral ground for high-level talks. Speaking in a video posted on X, he said he is meeting not only with banking leaders but also with policymakers and heads of state to discuss how crypto can modernize financial systems.
“We’re going to continue working on market structure legislation and meet with some of the bank CEOs to figure out how we can make this a win-win,” Armstrong said, adding that stablecoins should benefit both banks and crypto firms if regulations ensure a level playing field.
According to Reuters, U.S. President Donald Trump is also expected to attend the forum, though it remains unclear whether cryptocurrency regulation will feature on his agenda.
Looking ahead
Armstrong said his broader focus at Davos includes discussions around economic freedom, financial inclusion, and how tokenization could expand access to capital markets globally. While no immediate legislative breakthrough is expected, the meetings highlight a growing push to resolve regulatory deadlock through direct engagement between crypto firms and traditional finance.
