Coinbase (COIN) CEO Brian Armstrong is hitting a wall – and it looks a lot like the leaders of America’s biggest banks.
During meetings at the World Economic Forum in Davos, Armstrong reportedly approached several Wall Street executives to discuss the crypto market structure bill that would be submitted to Congress, according to a report published Thursday by the Wall Street Journal (WSJ).
The reception was frosty.
JPMorgan Chase CEO Jamie Dimon told Armstrong, “You’re full of crap,” according to people familiar with the exchange who spoke with the WSJ.
Bank of America’s Brian Moynihan attended a 30-minute meeting but dismissed Armstrong’s position, saying, “If you want to be a bank, just be a bank.” Wells Fargo CEO Charlie Scharf declined to commit, saying there was “nothing to say.” Citigroup’s Jane Fraser gave it less than a minute.
The freeze comes as Armstrong has strongly opposed the Senate’s crypto bill. After reviewing a bill, he announced on X that Coinbase “cannot support the bill as written.” He then warned that traditional banks were pushing to protect their turf by targeting stablecoin rewards – recurring payments to users who hold tokens like USDC.
These rewards work like interest-bearing accounts but typically offer higher returns, up to 3.5%. Banks say they pose a threat to deposit-based models that fund loans and other basic services. If users turn to stablecoins en masse, the impact on local lending and small banks could be significant. Armstrong says the answer is simple: compete.
The legislation, known as the CLARITY Act, could determine who can offer these products – and under what rules. Its outcome could reset the playing field between banks and crypto platforms.
Yet the line between the two sectors is not as clear as the public standoff suggests. Coinbase has partnerships with major banks, including JPMorgan and Citi. The current debate is therefore less about total disruption and more about who will set the terms for the next phase of digital finance.
CoinDesk reached out to Coinbase, JPMorgan, Bank of America, Wells Fargo and Citigroup for comment, but none were received at the time of publication.
