In a significant development for the cryptocurrency landscape, Coinbase CEO Brian Armstrong expressed strong optimism regarding U.S. regulatory efforts during the company”s Q4 2025 earnings call. He stated that lawmakers have charted a promising course under the Financial Innovation and Technology for the 21st Century Act (FIT21), suggesting that the industry is poised for critical advancements.
Armstrong”s remarks signal a notable shift in the political environment following the 2024 elections. With a more crypto-friendly Congress in place, discussions have transitioned from a defensive regulatory stance to a more collaborative policy dialogue. This evolution has opened up what Armstrong referred to as a “win-win-win” scenario for regulators, financial institutions, and consumers.
FIT21″s Impact on Key Stakeholders
Armstrong elaborated on how FIT21 addresses the concerns of three primary groups: the crypto industry, banks, and consumers. For the crypto sector, the legislation aims to clarify the demarcation between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). By explicitly defining which digital assets fall under securities or commodities, the bill seeks to eliminate what Armstrong described as years of “regulation by enforcement.”
For banks, FIT21 proposes to integrate cryptocurrencies more fully into the conventional financial framework. A pivotal aspect includes revising restrictive accounting standards, such as SAB 121, which previously hindered banks” ability to engage in custody activities. This change would enable banks to offer cryptocurrency custody and trading services without facing detrimental impacts on their balance sheets.
Consumers stand to benefit from enhanced protections under the proposed legislation. With measures such as mandatory disclosures, segregation of customer funds, and established operational standards, FIT21 aims to avert incidents like the FTX collapse. Armstrong stressed that robust consumer safeguards are crucial to achieving mainstream acceptance of digital assets.
Legislative Momentum in 2026
The Senate is currently assessing the bill with renewed urgency, spurred by various developments in the regulatory landscape. Efforts are underway to reconcile elements of the market structure framework with the GENIUS Act, which was enacted in 2025 to address stablecoin reserve standards and strategic Bitcoin holdings.
Armstrong noted that cryptocurrency has emerged as a “purple issue,” garnering bipartisan support as policymakers increasingly view digital assets as pivotal to national competitiveness and financial innovation. The White House”s current stance is also markedly more conciliatory compared to previous years, as the administration now seeks regulatory stability in the fintech sector rather than confrontation.
Market reactions to Armstrong”s optimistic outlook have been positive, with Coinbase shares rising nearly 5% in after-hours trading following his comments. Analysts believe that regulatory clarity could pave the way for substantial institutional investment that has remained dormant due to uncertainties in the legal framework surrounding cryptocurrency.
Armstrong succinctly summarized the current regulatory conversation, stating that it has shifted from mere survival to actively shaping the financial systems of the future within a U.S. regulatory environment. If FIT21 progresses as anticipated, 2026 could herald a new era of regulatory clarity and structural integration for the American cryptocurrency market.
