Brian Armstrong and Larry Fink debate Bitcoin, tokenization, regulation and AI, sketching a crypto‑infused, tech‑driven future for global finance.
Summary
- Fink recasts Bitcoin as “an asset of fear” and a long‑term hedge, while Armstrong dismisses the Buffett‑Munger “zero” thesis.
- Both see 2025 as a regulatory turning point, with U.S. law shifting crypto from gray zone to “well‑lit establishment” amid heavy industry lobbying.
- Tokenization and stablecoins, they argue, will strip out friction, reshape banks’ business models and determine whether the U.S. can keep pace with India and Brazil.
Brian Armstrong and Larry Fink use the DealBook Summit stage to sketch a future where Bitcoin, stablecoins, and tokenization sit inside—rather than outside—the global financial system, even as they disagree on whether crypto is ultimately driven by hope or fear.
The two joined DealBook Summit host Andrew Sorokin on stage on Dec. 3 to discuss how the landscape of crypto is changing, and what to expect from institutions and regulators in 2026.
Old skeptic, new Bitcoin evangelist
Larry Fink begins by owning his U‑turn: the man who once called Bitcoin “an index of money laundering and thieves” now oversees the world’s largest spot Bitcoin ETF at BlackRock. He says the shift came during Covid, after he “tested” his own views by meeting advocates and separating Bitcoin from the broader “crypto” label, concluding there is now “a big large use case for Bitcoin” as a long‑term asset. Today, he frames Bitcoin as “an asset of fear,” bought by people worried about physical or financial security and the long‑run debasement of money through deficits.
Brian Armstrong rejects the Buffett–Munger line that Bitcoin (BTC) will still go to zero, arguing “there’s no chance…that’s going to happen at this point.” He casts the Berkshire duo as products of a dollar‑dominated era who “grew up in an environment of America preeminence and the dollar was everything,” making it hard for them to imagine a more decentralized, internet‑native system.
Regulation, leverage and Washington’s price tag
Both men frame 2025 as an inflection point for U.S. crypto policy. Armstrong calls it the year crypto moves “from kind of gray market to well‑lit establishment,” pointing to the passage of the Genius Act on stablecoins and a bipartisan House vote on broader market structure rules now headed to the Senate. He links October’s sharp leverage washout in Bitcoin to lightly regulated offshore venues, arguing clear U.S. rules will pull risk back onshore.
Armstrong is unapologetic about Coinbase’s political spending, including about $50 million in corporate donations in the 2024 cycle and support for the Fairshake super PAC. In his telling, “holding bad government accountable” is part of the company’s mission to “increase economic freedom,” especially when “52 million Americans” who used crypto lacked “clear rules on the books to protect consumers.” Fink, by contrast, stresses process: BlackRock’s political giving is typically split “50% one party and 50%” the other, with every move filtered through the risk that it could be perceived as “buying favors” by current or future regulators.
Tokenization, stablecoins and the banks’ dilemma
If Bitcoin is the fear trade, tokenization is Fink’s growth trade. He argues that digitizing “every asset”—stocks, bonds, real estate—and moving them through tokenized rails will “reduce huge friction costs,” compress settlement times and democratize access. With an estimated “$4.1 trillion” already sitting in digital wallets, mostly stablecoins, he says the ability to move directly from tokenized cash into tokenized assets via an app would radically simplify investing.
Armstrong is blunter about incumbents: banks trying to block stablecoins are “just…trying to protect their profit margin,” using “regulatory capture” to avoid paying higher yields to depositors. His prediction is that within “a year or two” banks will pivot and lobby to “pay interest and yield on stablecoins in our own companies,” turning today’s threat into tomorrow’s product line. Coinbase, he notes, already powers pilots in stablecoins, custody and trading for major banks, while also providing custody and trading for “more than 80%” of existing crypto ETFs.
US versus the rest, AI and the labor question
Fink is stark on America’s competitive lag: “We’re late,” he says, and “India and Brazil” are now ahead in building fully digital financial plumbing, from real‑time payments to digitized currency. He links tokenization to a broader technological race that includes AI, warning that if the U.S. under‑invests, “other countries [are] going to beat us.”
Pressed on the macro backdrop, Armstrong calls this “a golden age for freedom,” citing democratized access to crypto products, the rise of prediction markets and fresh regulatory clarity around stablecoins as reasons for optimism heading into the next election cycle. Fink sounds more ambivalent: foreign investors remain heavily overweight U.S. dollar assets, but he flags an “anemic” 2025 job market—31,000 new jobs a month versus 154,000 the prior year—and asks whether the drag comes from policy uncertainty or accelerating “labor substitution because [of] technology.” At BlackRock, he notes, revenues are up roughly 40% over recent years while headcount has risen only about 5%, with margins expanding by “about 300 basis points,” a concrete illustration of doing “more with…less people.”
Governance, tokenized voting and prediction markets
The conversation briefly turns to corporate governance and state competition. Armstrong defends moving Coinbase’s legal home from Delaware to Texas, accusing Delaware’s courts of “hostility toward founder companies” and “unpredictable outcomes,” and praising Texas as “business friendly” and more resistant to “activist” litigation by tiny shareholders. Fink, meanwhile, links tokenization to shareholder democracy: if every stock is tokenized, “we would know instantaneous[ly] the asset owner of record” and could push voting directly to each investor’s app, potentially boosting participation. He warns that any U.S. move to bar index funds from voting would inadvertently hand more power to foreign investors and activist funds.
Armstrong closes by championing prediction markets as an emerging alternative to traditional media, a way for “99% of people” to get probabilistic signals on everything from the Suez Canal reopening to political outcomes. He even raises the provocative idea of allowing insider trading in such markets if the goal is better information rather than price purity, while acknowledging the tension with market integrity.
