Coinbase’s Brian Armstrong Pushes for Stablecoin Regulation as Bipartisan Support Frays

Coinbase CEO Brian Armstrong is pressing U.S. lawmakers to revive momentum behind the GENIUS Act, a bipartisan bill aimed at introducing federal oversight for stablecoins.

With the legislation facing new political turbulence, Armstrong took to X to call on the Senate and House to act before Congress breaks for recess. “This is a pivotal moment,” he said, stressing the need for 60 votes to pass the measure.

The GENIUS Act would bring stablecoin issuers under the purview of the Office of the Comptroller of the Currency, requiring 1:1 backing by cash or short-term Treasuries. Yield-generating stablecoins would be prohibited, and firms would have three years to comply with the new standards. Proponents say the bill could strengthen the dollar’s role in the global digital economy while safeguarding consumers and bringing long-awaited regulatory clarity.

But after making strong progress, the bill has hit a snag. Nine Democratic senators—four of whom had previously backed it—have pulled their support, citing national security and money laundering concerns. One senator pointed to a controversial deal involving a Trump-linked crypto firm and a UAE-backed investment group as a red flag.

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The backlash has sparked broader debate. Senator Elizabeth Warren accused the bill of enabling presidential profiteering, while co-sponsor Cynthia Lummis admitted the Trump family’s crypto ties raise ethical questions. Even among supporters, there’s growing unease about the optics of the bill’s timing and beneficiaries.

With political lines hardening, Senator Bill Hagerty has warned colleagues that bipartisan cooperation is essential. Without Democratic support, the legislation’s future remains uncertain—despite strong backing from Coinbase and industry figures like Andreessen Horowitz’s Chris Dixon, who said the bill would bring “transparency and consumer protection.”

Alexander Stefanov