Banks Must Embrace Crypto or Risk Losing Ground-Coinbase CEO

Coinbase CEO Brian Armstrong has accused major banks of undermining crypto competition under the Crypto Clarity Act. He claims banks are leveraging regulatory influence to favor traditional financial institutions while imposing disproportionate burdens on crypto firms. The dispute highlights a broader debate over the fairness and inclusivity of digital asset regulation in the U.S.

Coinbase has taken a step into traditional finance by quietly testing stock trading for a limited group of users. The move puts it in direct competition with major brokerage firms like Charles Schwab and Robinhood. Management sees stock trading as a gateway to future tokenized equities and blockchain-based financial infrastructure. According to reports, this expansion reflects its broader strategy to bridge traditional finance and blockchain-based systems.

Meanwhile, Fidelity's 2026 "Look Ahead" report outlines how traditional financial infrastructure integration will yield tangible results this year. The report notes that 2025 was a foundational period, with minimal price volatility masking substantial regulatory and technological progress. Fidelity predicts that institutional adoption will accelerate as crypto becomes a more standard part of portfolio construction and investment strategy. The report indicates that younger investors will continue to embrace digital assets.

Why Did This Happen?

The tension between banks and crypto platforms like Coinbase has been intensifying. Armstrong argues that current regulatory proposals favor traditional institutions, creating an uneven playing field that could stifle innovation. Banks, however, maintain that stricter oversight is necessary to mitigate systemic risks and protect consumer interests. According to analysis, the situation has created significant market uncertainty.

Coinbase's expansion into stock trading reflects its broader strategy to bridge traditional finance and blockchain-based systems. The firm is not just testing new financial products but laying the groundwork for a future where equities are tokenized and managed on-chain. This approach positions Coinbase as a leader in the next phase of financial technology integration. As reported, the move is part of a strategic shift toward traditional finance.

What Are Analysts Watching Next?

The stalled Clarity Act has created uncertainty for the crypto market, with investors closely watching for regulatory clarity. Coinbase's withdrawal of support for the bill, citing concerns over stablecoin rewards and tokenized equities, has further complicated the legislative landscape. The delay has also impacted market sentiment, with crypto prices fluctuating as investors await resolution. As analysis shows, the bill's uncertainty is affecting market behavior.

Fidelity's report suggests that 2026 will bring a critical mass of institutional adoption. The company projects that younger investors will continue to embrace digital assets, while older demographics are recognizing their potential as a hedge against inflation and a source of growth. This shift is expected to unlock trillions in capital as traditional financial advisors integrate crypto into their services. According to Fidelity's outlook, this transition is already underway.

How Do Global Developments Shape the Crypto Landscape?

Belarus is taking a proactive stance in crypto integration by signing a decree that allows the establishment of "cryptobanks." These institutions will be able to combine cryptocurrency activities with traditional banking and financial services. The move is part of a broader strategy to position Belarus as a hub for financial technology innovation. As reported, the decree marks a significant step in digital finance.

On the international stage, China-led mBridge has processed over $55 billion in cross-border transactions using its multi-CBDC platform. This growth highlights the increasing role of digital currencies in global trade. The platform is currently being tested by central banks in China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia. According to data, the platform's adoption is accelerating.

The convergence of traditional finance and digital assets continues to accelerate, with regulatory clarity and infrastructure development as key enablers. As financial institutions and tech firms race to integrate crypto into their services, the competition for market leadership is intensifying. Investors and regulators alike are watching closely to see which players will emerge as dominant forces in this evolving landscape.