Coinbase Global is urging the U.S. Treasury Department to ensure that its upcoming rules for the GENIUS Act stay closely aligned with what Congress originally intended. The leading crypto exchange warned that any regulatory overreach could hinder innovation and derail the law’s goal of positioning the United States as a global hub for digital finance.
In a statement shared on X (formerly Twitter), Coinbase Chief Policy Officer Faryar Shirzad emphasized that the Treasury’s implementing regulations must “stick to the clear intent of the bill text” and allow U.S.-issued stablecoins to remain competitive on a global scale.
We submitted @coinbase's response to @USTreasury's request for comments on the implementation of the GENIUS Act. Our message is simple: GENIUS is landmark legislation designed to make the US the undisputed global leader in crypto and stablecoins. To make that happen, the… pic.twitter.com/XLyq15u0Ov
— Faryar Shirzad 🛡️ (@faryarshirzad) November 5, 2025
The company’s response outlined several key recommendations. Coinbase urged regulators to interpret the statute narrowly, clarifying that the law should not apply to non-financial software developers, blockchain validators, or open-source protocols. It also argued that the GENIUS Act’s prohibition on paying interest should apply strictly to stablecoin issuers — not to intermediaries or exchanges that offer third-party rewards or loyalty programs.
“Treating loyalty programs as prohibited ‘interest’ would rewrite Congress’s carefully drawn lines and conflict with the statute’s purpose,” the company stated.
Coinbase also called for payment stablecoins to be treated as cash equivalents for both tax and accounting purposes, arguing that their design mirrors the stability and function of traditional currency. The company urged the Treasury and the Internal Revenue Service to take a “pragmatic, low-burden approach” when developing tax rules around these digital assets.
The GENIUS Act, enacted in July 2025, created the first federal framework for regulating stablecoins in the United States. The law requires that stablecoins be fully backed by U.S. dollars or similarly liquid assets, imposes annual audit requirements on certain issuers, and establishes oversight standards for foreign-issued tokens.
As federal agencies move to implement the law, Coinbase’s comments highlight growing industry concern that overly broad regulations could limit innovation and slow the country’s progress toward becoming a leader in digital payments.
