Armstrong urges balanced crypto rules amid Coinbase lawsuit.

Coinbase CEO: Banking Rules Not Designed for AI — Stablecoins Could Bridge the Gap

  • Stablecoins could serve as the payment layer for autonomous AI agents because traditional banking rules require human identity checks.
  • Coinbase has lobbied in Washington for clearer legislation and balanced oversight to curb bad actors without stifling innovation.
  • Coinbase has sued the FDIC, alleging the agency pressured banks to limit services to crypto firms.

Brian Armstrong, CEO of Coinbase, said on Wednesday that stablecoins may become the default way for autonomous AI agents to make payments because those agents cannot open bank accounts. Armstrong discussed the issue while he spoke with Goldman Sachs CEO David Solomon at the Builders & Innovators Summit.

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Armstrong argued current financial rules are built around human identity and create friction as AI systems act autonomously. “We believe that AI agents are going to do this with stablecoins because they can’t get a credit card or bank account opened themselves,” he said. He added that compliance frameworks require identity checks and must evolve as AI adoption grows. “All current financial services regulations require know-your-customer checks, meaning individuals must provide identification to access financial services,” he said.

Definition: stablecoins — a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency.
Definition: know-your-customer (KYC) — regulatory identity-verification checks required to prevent fraud and money laundering.
Definition: debanking — the practice of banks limiting or ending services to certain customers or industries.

Armstrong said Coinbase has spent years engaging lawmakers in Washington to seek clearer rules and legislation. “Going back like six or seven years ago, we started to really show up in DC and start to request, like, we would like to get clearer rules. We’d like legislation,” he said. “We think that this is necessary to prevent bad actors and clean up the industry.”

He emphasized the need for balanced oversight. “There’s going to be a regulatory structure around this of some kind,” Armstrong said, urging policymakers to “strike the right balance.” He added, “That innovation creates growth in the economy, creates less friction, creates more speed.”

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Separately, Coinbase has sued the Federal Deposit Insurance Corporation (FDIC) under the Freedom of Information Act, alleging the agency used “pause letters” to pressure banks to stop or limit services to crypto companies. The company says that practice discouraged banks from working with crypto firms and led to debanking.

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