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Coinbase Urges US Treasury to Avoid Overreach in GENIUS Act Rulemaking

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Coinbase Global has referred to as on the US Treasury Department to guarantee its upcoming guidelines for the GENIUS Act stay devoted to Congress’s authentic intent.

Key Takeaways:

  • Coinbase urged the US Treasury to hold GENIUS Act guidelines aligned with congressional intent to keep away from stifling crypto innovation.
  • The change referred to as for a slender interpretation, excluding builders, validators, and open-source protocols from regulation.
  • It proposed recognizing fee stablecoins as money equivalents to simplify tax and accounting therapy.

The change warned that extreme regulation may stifle innovation and undermine US management in crypto.

In a detailed response to the Treasury, the change urged regulators to keep away from increasing the regulation’s scope past what the statute requires.

Coinbase Calls for Narrow GENIUS Act Rules to Protect Stablecoin Competitiveness

Coinbase’s Chief Policy Officer, Faryar Shirzad, mentioned on X that the implementing laws “should stick to the clear intent of the invoice textual content and be certain that US-issued stablecoins have the flexibility and competitiveness wanted to change into the world’s dominant fee and settlement instrument.”

The firm pressed for a slender interpretation of the regulation, excluding non-financial software program builders, blockchain validators, and open-source protocols from oversight.

It additionally clarified that the GENIUS Act’s interest-payment prohibition applies solely to stablecoin issuers, not to exchanges or intermediaries that provide loyalty or rewards applications.

“Treating third‐occasion rewards or loyalty applications as prohibited ‘curiosity’ would rewrite Congress’s rigorously drawn strains and battle with the statute’s objective,” Coinbase mentioned.

The change additionally proposed that fee stablecoins be acknowledged as money equivalents for tax and accounting functions, arguing that their design mirrors the steadiness and performance of fiat forex.

Coinbase referred to as on the Treasury and the Internal Revenue Service to undertake a “pragmatic, low-burden strategy” to taxation for fee stablecoins.

The GENIUS Act, enacted in July 2025, set out the primary federal framework for regulating stablecoins.

It requires tokens to be totally backed by US {dollars} or equal liquid belongings, mandates annual audits for big issuers, and establishes requirements for international issuance.

Coinbase’s feedback spotlight rising business concern that the regulation’s rollout may outline how the US balances innovation, investor safety, and world competitiveness in the stablecoin sector.

Coinbase Says Stablecoins Strengthen US Banking System

Last month, Coinbase rejected claims that the growth of stablecoins may drain deposits from US banks, arguing as a substitute that they reinforce the greenback’s world dominance.

Shirzad mentioned most stablecoin demand comes from worldwide customers in search of greenback publicity, not from U.S. savers.

The agency added that about two-thirds of stablecoin exercise happens on DeFi platforms, separate from conventional banking, and in contrast the present fears to these raised throughout previous monetary improvements like cash market funds.

Meanwhile, the Bank of England (BOE) can also be preparing to release its long-awaited regulatory framework for stablecoins, aiming to match the tempo of US developments in digital asset oversight.

Deputy Governor Sarah Breeden dismissed strategies that the UK is trailing behind the US, telling Bloomberg that the brand new regime would change into operational “simply as rapidly because the US.”

The BOE will publish its formal session on stablecoin regulation on November 10.

The put up Coinbase Urges US Treasury to Avoid Overreach in GENIUS Act Rulemaking appeared first on Cryptonews.

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