Coinbase CEO Clashes With Wall Street Over Crypto Regulation

Coinbase CEO Brian Armstrong is facing strong resistance from some of the most powerful figures in traditional finance as debates over U.S. crypto regulation intensify. During the World Economic Forum in Davos, Armstrong reportedly met with several top Wall Street executives to discuss the crypto market structure bill currently moving through Congress. According to a Wall Street Journal report, those conversations were tense and largely unproductive, highlighting the growing divide between crypto companies and major banks.

The reception Armstrong received was notably cold. JPMorgan Chase CEO Jamie Dimon was blunt, allegedly telling Armstrong, “You are full of s---.” Bank of America CEO Brian Moynihan agreed to a 30-minute discussion but dismissed Armstrong’s arguments, suggesting that crypto firms should simply operate as banks if they want similar privileges. Wells Fargo CEO Charlie Scharf declined to engage altogether, saying there was nothing to discuss, while Citigroup CEO Jane Fraser reportedly cut the conversation short in under a minute.

These encounters come at a critical moment for Coinbase and the broader crypto industry. Armstrong has recently taken a firm stance against the Senate’s proposed crypto legislation, known as the CLARITY Act. After reviewing a draft of the bill, he publicly stated on X that Coinbase “can’t support the bill as written.” He later accused traditional banks of lobbying lawmakers to restrict stablecoin rewards, which are yield-generating incentives offered to users holding digital assets like USDC.

Stablecoin rewards function similarly to interest-bearing accounts and can offer yields as high as 3.5%, often exceeding those of traditional savings accounts. Banks argue that widespread adoption of stablecoins could threaten deposit-based banking models that support lending and local financial services, particularly for smaller institutions. Armstrong has countered that banks should respond through competition rather than regulation.

While the public clash suggests a sharp divide between crypto platforms and traditional finance, the reality is more complex. Coinbase continues to maintain partnerships with major banks, including JPMorgan and Citigroup. This suggests the dispute is less about eliminating banks and more about who will define the rules governing the future of digital finance in the United States.

The outcome of the CLARITY Act could significantly reshape the competitive landscape, determining which institutions are allowed to offer crypto-related financial products and under what regulatory framework. At press time, Coinbase and the major banks involved declined to comment on the reported meetings.