Banks Backed Down on Crypto Bill Due to Fear of Competition

Coinbase CEO Brian Armstrong has revealed that several major U.S. banks opposed the CLARITY Act because they feared competition from crypto firms.

Armstrong made these comments on the Money Rehab program, stating that 'a couple of the big banks' worked against the legislation and attempted to persuade the government to stop the bill.

The remarks represent Armstrong's account of the dispute and do not establish that the banks' opposition was driven solely by competitive concerns.