US bank leaders respond coldly to Coinbase CEO at Davos

CEO Coinbase Brian Armstrong is said to have faced a cold response from the leaders of major American banks when campaigning against a key crypto bill in the Senate.

At the World Economic Forum in Davos, Armstrong approached several Wall Street leaders to discuss the crypto market structure bill currently under review by the US Congress. However, the exchanges were described as “frosty.”

Armstrong According to close sources, JPMorgan CEO Jamie Dimon outright rejected Armstrong’s views. Bank of America CEO Brian Moynihan, despite a 30-minute meeting, stated that if Coinbase wants to operate as a bank, “they should become a bank.” Wells Fargo CEO Charlie Scharf refused to discuss, and Citigroup CEO Jane Fraser exchanged less than a minute.

Tensions revolve around the bill called the CLARITY Act. Armstrong publicly opposes the current draft, claiming that traditional banks are lobbying to limit rewards from stablecoins — a form of periodic interest paid to token holders like USDC.

These rewards function similarly to interest-bearing accounts but often offer higher yields, potentially up to 3.5%. Banks worry that this model threatens deposit sources — the foundation for lending activities and core services. Armstrong argues that instead of suppressing, banks should compete directly.

The CLARITY Act could determine which organizations are allowed to offer stablecoin products and under what legal framework, thereby reshaping the playing field between traditional banks and crypto companies.

Despite the public confrontation, the boundaries between the two sides are not entirely separate. Coinbase still maintains cooperative relationships with several major banks, including JPMorgan and Citigroup, indicating that the current dispute revolves around who will set the rules for the next phase of digital finance.