Brian Armstrong: The main reason for the stalemate on the market structure bill lies with the banking association, not the banks themselves

According to Odaily, the CEO of a certain exchange, Brian Armstrong, stated that the main reason for the deadlock in crypto market structure legislation negotiations lies with banking trade groups rather than individual banking institutions. Speaking at the World Liberty Forum in Florida, he pointed out that some industry associations view the crypto sector with a "zero-sum mentality," believing that for banks to win, the crypto industry must lose, thus hindering the progress of the bill.

One of the current points of contention is whether to allow stablecoin rewards. After the Senate Banking Committee's efforts to advance the market structure bill were blocked, banking representatives insisted on restricting stablecoin reward provisions during multiple rounds of meetings organized by the White House. The next round of related meetings is expected to take place this week.

Armstrong stated that he anticipates some form of compromise in the future, offering new policy benefits to banks in exchange for their support of the bill. He also emphasized that the real concern for small and medium-sized banks is not the flow of funds to stablecoin issuers, but rather the outflow of deposits to larger banking institutions. Meanwhile, several major banks have already begun to deploy crypto businesses, and the exchange is currently providing crypto infrastructure support to "all five of the world's top five banks."

Armstrong believes that since compliant stablecoin products with reward mechanisms have already emerged in the United States, the industry and regulators need to decide whether to view them as an opportunity or a threat.