Crypto’s Win on Landmark Legislation Reshapes Rivalry With Banks

For years, big banks worked to keep crypto out of mainstream finance, citing everything from money laundering and fraud to stability risks, and arguing the industry could not enjoy bank-like privileges without bank-equivalent oversight.

Now, after the Senate Banking Committee advanced landmark crypto legislation despite a late push from banking groups, the first phase of the fight is over. Crypto firms are no longer arguing over whether they belong in regulated finance at all, but over the terms on which they will compete with banks for deposits, payments and customer relationships.

Brian Armstrong, chief executive officer of Coinbase Global Inc., speaks to members of the media on Capitol Hill in January

Photographer: Aaron Schwartz/Bloomberg

The key Senate panel moved forward Thursday with ...