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- Coinbase supports the U.S. Treasury’s efforts to implement the GENIUS Act with clarity and precision.
- The company emphasizes the need for innovation-friendly rules that strengthen U.S. leadership in stablecoins.
- It urges Treasury to avoid expanding beyond the Act’s intent to ensure fair growth and global competitiveness.
Coinbase Global Inc. has expressed strong support for the U.S. Department of Treasury’s implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act. The company outlined its position in a detailed response to the agency’s advance notice of proposed rulemaking.
Coinbase called the GENIUS Act a forward-looking framework that can turn the U.S. into a global hub for digital asset innovation. Unlike many financial laws that emerge from crises, this legislation aims to encourage growth and technological progress. According to Coinbase, stablecoins have already reshaped financial systems by offering faster payments, lower fees, and more reliable access to digital money.
The company believes that proper implementation of the GENIUS Act will enhance consumer trust, ensure financial stability, and expand the use of stablecoins in global markets. It stated that clear rules and federal oversight are essential for making stablecoins a trusted part of modern finance.
Coinbase Stresses That GENIUS Act Should Guide All Policies
Coinbase urged the Treasury to stay faithful to the language of the GENIUS Act. It warned that unnecessary expansion of definitions or requirements could slow innovation and drive projects offshore. The company emphasized that the law’s intent is to regulate issuers of stablecoins, not software developers or blockchain infrastructure providers.
The exchange also highlighted the importance of excluding non-financial software and decentralized networks from the scope of regulation. Including them, Coinbase said, would discourage open-source development and misdirect oversight from real financial risks.
It further clarified that the definition of a “payment stablecoin” should remain limited to tokens backed by 1:1 reserves and redeemable in national currency. This definition ensures transparency and protects users whileT distinguishing stablecoins from speculative assets like governance or utility tokens.
Coinbase Pushes Treasury for Onshore Stablecoin Growth
Coinbase also urged the Treasury to develop “fit-for-purpose” rules that will support U.S.-based issuers. It recommended that stablecoins be taxed based on their current usage pattern, i.e., as payment instruments rather than debt instruments.
The company also recommended the coordination of U.S. regulators to promote consistent treatment of stablecoins in financial markets. The company was keen to point out that GENIUS-compliant assets must be regarded as cash collateral on account of their liquidity properties.
Finally, the Coinbase company urged the need for clarity with respect to enforcement, arguing that the fines must apply only to the violation of the Act itself. “Clarifying the rules will help build confidence, allowing trusted issuers to flourish under sound regulation,” the company explained. Also, the company expressed its support for the protection of consumers.
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