Coinbase Global has called on the US Treasury Department to ensure its upcoming rules for the GENIUS Act remain faithful to Congress’s original intent.
The exchange warned that excessive regulation could stifle innovation and undermine US leadership in crypto. In a detailed response to the Treasury, the exchange urged regulators to avoid expanding the law’s scope beyond what the statute requires.
The company pressed for a narrow interpretation of the law, excluding non-financial software developers, blockchain validators, and open-source protocols from oversight.
Coinbase’s Chief Policy Officer, Faryar Shirzad, said on X that the implementing regulations “must stick to the clear intent of the bill text and ensure that US-issued stablecoins have the versatility and competitiveness needed to become the world’s dominant payment and settlement instrument.”
The GENIUS Act, enacted in July 2025, set out the first federal framework for regulating stablecoins. It requires tokens to be fully backed by US dollars or equivalent liquid assets, mandates annual audits for large issuers, and establishes standards for foreign issuance.
Coinbase called on the Treasury and the Internal Revenue Service to adopt a “pragmatic, low-burden approach” to taxation for payment stablecoins.
