Bank Executives Adopt a More Constructive View on Crypto

Coinbase CEO Brian Armstrong offered fresh insight into this transition following his participation in the World Economic Forum held in Davos. Armstrong noted that many of the banking executives he spoke with displayed a far more positive attitude toward cryptocurrencies than in previous years.

He explained that several senior banking leaders now see crypto not merely as an alternative investment class, but as a strategic necessity for the future of financial institutions. Armstrong shared that one CEO from a globally top-10 bank described crypto as their organization’s “number one priority,” even characterizing it as an existential issue. Such remarks suggest that digital assets are no longer viewed as optional experiments but as integral to long-term competitiveness.

Large Banks Expand Bitcoin-Related Offerings

This changing mindset is increasingly reflected in concrete actions. UBS, the Swiss banking giant with significant U.S. operations, was recently added to River’s list of Bitcoin-engaged institutions. The bank is reportedly evaluating the possibility of offering Bitcoin and Ether trading services to its wealthiest clients in the United States.

Among America’s so-called “Big Four” banks, momentum is also building. JPMorgan Chase has indicated that it is considering the addition of crypto trading services. Wells Fargo already provides Bitcoin-backed lending solutions for institutional clients, while Citigroup is exploring crypto custody services aimed at institutional investors. Together, these three banks manage more than $7.3 trillion in assets, underscoring the scale of capital now intersecting with Bitcoin.

Not All Institutions Are Fully On Board

Despite this progress, consensus across the banking sector remains incomplete. Bank of America, the second-largest bank in the U.S., has yet to announce any Bitcoin-related initiatives. Similarly, other major institutions such as Capital One and Truist Bank continue to maintain a cautious approach toward crypto services.

Banks are particularly hesitant when it comes to yield-generating stablecoin models, which many view as posing potential systemic risks. Until regulatory frameworks become clearer, most institutions appear unwilling to engage deeply with these products.

Overall, the broader picture suggests that Bitcoin is increasingly being recognized by U.S. banks as a durable component of the financial system rather than a passing trend. However, full-scale adoption across the sector is likely to remain a gradual process shaped by regulation, risk management, and market demand.

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According to Bloomberg-sourced reporting, the Senate Banking Committee’s decision to shift its focus toward Trump’s housing affordability initiative has likely pushed consideration of the crypto market structure bill into late February or March.

Trump’s Davos Crypto Message: Urgency from the White House

Speaking at the World Economic Forum in Davos, President Trump expressed optimism that crypto market structure legislation could be signed into law “very soon.” He emphasized that Congress is actively working on the issue and briefly departed from his prepared remarks to underscore his point, adding, “Bitcoin — all of them.”

The timing of the statement was notable. It came only days after the Senate Banking Committee abruptly canceled a scheduled markup session for the bill. Viewed in context, Trump’s remarks appeared to be a direct attempt to apply public pressure on lawmakers to accelerate the process.

A Split Legislative Path for Crypto: Two Committees, One Framework

The proposed crypto market structure framework is advancing through two separate Senate committees, each responsible for different regulatory domains:

• The Senate Banking Committee, which oversees securities regulation and broader financial policy

• The Senate Agriculture Committee, which handles commodity markets and CFTC jurisdiction

For the legislation to reach the Senate floor, both committees must pass their respective bills and reconcile them into a single, unified framework.

Progress, however, has been uneven. The Banking Committee postponed its planned markup after Coinbase withdrew its support for the bill. In the following week, the committee redirected its attention toward housing policy, delaying crypto-related discussions further. As a result, the earliest realistic window for revisiting the bill now appears to be late February or March.

In contrast, the Agriculture Committee has continued moving forward. Chairman John Boozman released the text of the Digital Commodity Intermediaries Act and confirmed that a markup session is scheduled for January 27. Still, Boozman acknowledged that bipartisan negotiations with Senator Cory Booker failed to produce an agreement.

The Central Dispute: Stablecoin Yield

At the heart of the legislative impasse lies a dispute over stablecoin yield.

Under the GENIUS Act, signed by President Trump last year, stablecoin holders are permitted to earn rewards or yield — effectively interest-like returns. In some cases, these yields can surpass those offered by traditional bank deposits.

This has triggered strong opposition from banking industry lobbyists, who are pushing lawmakers to restrict or eliminate stablecoin yield provisions in the new market structure bill.

Coinbase has drawn a firm line on this issue. CEO Brian Armstrong announced that the company withdrew its support for the legislation precisely because of these proposed restrictions, stating that “no bill is better than a bad bill.”

In comments delivered during the Davos forum, Armstrong accused banking associations of attempting to suppress competition, arguing that such efforts run counter to fundamental American principles.

White House Pushback Against Industry Resistance

Coinbase’s stance prompted a sharp response from the Trump administration. Patrick Witt, executive director of the president’s digital assets council, publicly criticized Armstrong’s position.

Witt emphasized that the current pro-crypto regulatory environment exists largely because of Trump’s electoral victory and policy direction. He warned that resistance from within the crypto industry itself could undermine a rare opportunity to establish a favorable regulatory framework, potentially resulting in serious long-term consequences.

Lawmakers Warn of a Narrow Window

Frustration is growing among legislators as the bill stalls. Senator Cynthia Lummis, a long-time crypto advocate who is set to retire next year, openly expressed disappointment with the pace of progress and noted that time is running out to finalize meaningful legislation.

Industry leaders share similar concerns. Blockchain Association CEO Peter Smith cautioned that failure to pass the bill now could push the issue beyond the upcoming midterm elections, effectively delaying comprehensive regulation by at least two more years.

Representative William Timmons highlighted the economic stakes, arguing that a clear and competitive regulatory framework could bring tens of billions of dollars back into the U.S. crypto sector. Without it, he warned, crypto innovation and capital may continue migrating overseas.

Markets Move Faster Than Lawmakers

While Congress debates, financial markets are already adapting. The New York Stock Exchange recently announced plans to launch a blockchain-based platform for tokenized securities, offering instant settlement and around-the-clock trading.

Senator Thom Tillis pointed to developments like these as evidence that crypto is no longer a peripheral issue. In his view, maintaining the United States’ leadership in global finance now requires getting crypto regulation right, as digital assets are becoming an integral component of modern banking systems.

What Happens Next?

The current landscape reveals clearly defined positions:

• The Trump administration is pushing for rapid passage

• Coinbase considers restrictions on stablecoin yield a non-negotiable red line

• Banking lobbyists remain committed to keeping those restrictions in place

Although the Agriculture Committee appears set to advance its bill, a complete market structure framework cannot materialize without action from the Banking Committee. Ultimately, the unresolved conflict over stablecoin yield will determine whether the legislation moves forward — or stalls indefinitely.

What is increasingly clear is that time is becoming a critical factor. Each delay raises the risk that the United States could lose its competitive edge in shaping the future of global crypto markets.

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Crypto Regulation Enters the Global Arena

With U.S. President Donald Trump and several European leaders attending the forum, Davos provides a high-profile platform to discuss the future of global finance. Among the topics expected to draw attention is the proposed U.S. crypto market structure legislation, a bill that has sparked intense debate within both the crypto industry and traditional financial circles. Rather than remaining a domestic issue, the legislation is now being examined through a broader international lens.

Armstrong’s Focus: Bridging Crypto and Banking

Brian Armstrong’s presence in Davos comes with a clear objective. After Coinbase recently withdrew its support for the proposed crypto law, Armstrong is now working to address the core disagreements behind that decision. His plan includes meetings with senior banking executives to explore whether the legislation can be reshaped into a framework that benefits both crypto-native firms and established financial institutions.

One of the most contentious issues remains stablecoins. Armstrong has repeatedly argued that stablecoins should not be viewed as a threat to banks, but rather as tools that could unlock new efficiencies and revenue opportunities within the traditional financial system. At the same time, uncertainty around whether stablecoin issuers should be allowed to offer yield, along with potential restrictions on decentralized finance, continues to fuel friction between regulators and the industry.

Engaging Policymakers Beyond Davos

Beyond private meetings, Armstrong has indicated that feedback from Davos will be shared directly with U.S. lawmakers. The goal is to ensure that any final version of the legislation reflects practical realities rather than imposing rigid constraints that could stifle innovation. In addition, Armstrong is expected to hold discussions with government leaders about the broader role of crypto assets in the global economy.

Why Coinbase Pulled Its Support

Coinbase’s decision to step back from the bill followed delays in Senate committee votes, driven by disagreements between the Banking and Agriculture committees. The exchange cited concerns over limitations on stablecoin interest and constraints placed on DeFi as reasons for withdrawing its backing. Armstrong summed up the stance by suggesting that passing a flawed law would be worse than passing none at all.

As conversations unfold in Davos, the outcome of these high-level engagements may prove decisive in shaping the future direction of U.S. crypto regulation.

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Armstrong’s Surprising Outlook

Armstrong, who usually avoids giving price targets, shared his view on X, writing: “We’ll see $1M per Bitcoin by 2030.” He made the statement while referencing his appearance on the Cheeky Pint podcast.

https://twitter.com/brian_armstrong/status/1958259831577731159

This bold forecast aligns with the expectations of several other high-profile figures in the crypto industry.

Other Big Names with Similar Bitcoin Predictions

Former Twitter CEO Jack Dorsey has also suggested that Bitcoin could surpass $1 million by 2030. ARK Invest’s Cathie Wood has gone even further, projecting a possible $1.5 million valuation in her firm’s bull case scenario.

Meanwhile, MicroStrategy’s Michael Saylor argues that this milestone could be reached if Wall Street allocates just 10% of its reserves to Bitcoin. Author Robert Kiyosaki, known for Rich Dad Poor Dad, similarly believes inflation and mounting debt could push Bitcoin into seven-figure territory.

Regulatory Progress and the US Bitcoin Reserve

Armstrong emphasized that regulatory progress in the US could mark a critical milestone for the crypto industry. He pointed to stablecoin legislation and a market structure bill pending in the Senate, suggesting that meaningful changes might arrive before the end of the year.

He also highlighted that the US government now holds a strategic Bitcoin reserve, something he once considered unimaginable.

According to Armstrong, many of the risks that previously clouded Bitcoin’s future are fading. The likelihood of governments banning the asset has decreased, while the Bitcoin protocol has proven resilient for over a decade.

Rising Interest from Institutional Investors

The Coinbase CEO noted that many large funds already allocate around 1% of their portfolios to BTC. With clearer regulations, he believes this share could grow significantly.

Armstrong added that the rise of spot ETF products has already sparked a wave of adoption, attracting strong institutional demand. He expects this momentum to accelerate in the coming years.

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