Coinbase Invites Banks To Build Competitive Web3 Products

• Coinbase CEO has called out U.S. banks for trying to kill competition under the current Clarity Act.
• Armstrong has invited traditional banks to build competitive Web3 products for the 52 million U.S. crypto users.
• A consensus among the industry and banking members is that a deal will be made in the coming days.

Coinbase Global Inc. (NASDAQ: COIN) CEO Brian Armstrong has condemned the banking industry. As the negotiations among the stakeholders continue, Armstrong has called out traditional banks for attempting to kill competition through the current Clarity Act.

Coinbase CEO Invites U.S. Banks to Crypto on Good Faith

In an interview with CNBC, Armstrong invited the entire banking industry to build competitive Web3 products. Furthermore, Armstrong stated that it is clear that the American voters want crypto to update the siloed traditional financial system.

As Coin Edition reported, Coinbase pointed out several issues with the current Clarity Act that are not in line with President Donald Trump’s agenda for the crypto industry. According to Armstrong, banks should adopt blockchain technology and build competitive stablecoin products, instead of trying to kill competitors under the current Clarity Act.

He stated that the 52 million American voters deserve to earn more money from their money. Furthermore, banks offer less than 50 bps in interest on national deposits while the treasury yields pay around 3.89%.

As such, Armstrong urged the lawmakers to consider passing a crypto market structure that is fair for all parties. The Clarity Act’s markup reading at the Senate was postponed earlier this week to ensure consensus among all parties.

“I think stablecoins are an opportunity for banks. They should be able to build great products using stablecoins… and Congress should build a level playing field,” Armstrong stated.

Related: Coinbase Pulls Support Of CLARITY Act, Citing Restrictions

Why Now?

Armstrong has urged the crypto industry to remain steadfast in advocating for a fair Clarity Act ahead of the 2026 midterm elections. Moreover, the 52 million Americans invested in the crypto industry have a significant influence that traditional financial institutions and the political class cannot ignore.

According to Patrick Witt, a member of President Trump’s Council of Advisors for digital assets, the crypto industry should not forget the high number of Democrat Senators that are willing to vote against the Clarity Act. As such, Armstrong is keen to have the Clarity Act passed in the near term under the Republicans and President Trump.

What’s Next?

The next phase of the Clarity Act, following the Senate’s markup delay, is negotiations for a unanimous consensus between the leaders in the crypto and banking industries. According to Eleanor Terrett, a deal on stablecoin yield can be achieved in the coming days.

Following the passage of the Clarity Act in the House last summer, the Senate is expected to expedite its process amid the executive pressure.

Related: Can One Bill Fix U.S. Crypto Rules? Inside the Push for the CLARITY Act