- Coinbase urges strict adherence to the GENIUS Act’s intent.
- Broader rules may stifle U.S. stablecoin innovation.
- Regulatory overreach risks impacting U.S. market competitiveness.
Coinbase has submitted feedback to the U.S. Treasury about the GENIUS Act, urging adherence to congressional intent to avoid expanding prohibitions beyond stablecoin issuers.
Broader rules could stifle innovation and damage the U.S. stablecoin market’s competitiveness, with potential negative impacts on crypto assets like USDC, USDP, BTC, and ETH.
Coinbase has submitted formal feedback to the U.S. Treasury, emphasizing alignment with congressional intent regarding the GENIUS Act. The company cautions that expanding restrictions beyond stablecoin issuers could negatively impact innovation and the U.S. stablecoin market’s global standing.
Coinbase, led by Chief Policy Officer Faryar Shirzad, is advocating for precise regulatory implementation. Shirzad stated, “Implementing regulations must stick with the actual intent of the bill text and must ensure that U.S.-issued stablecoins have the versatility as well as the competitiveness required to become the world’s leading payment and settlement instrument.”
Potential impact includes significant effects on stablecoin-related businesses and innovation. Broader restrictions might cause deposit shifts from traditional banks, estimated by the Bank Policy Institute to prevent $6.6 trillion in outflows.
The regulatory discussions may also influence feelings about U.S.-issued stablecoins like USDC and USDP. Exchange-linked assets along with cryptos such as BTC and ETH could face market volatility from regulatory fluctuations.
Coinbase’s Q3 2025 revenue hit $355 million, reflecting exposure to shifting stablecoin regulations. Maintaining regulatory focus aligns with industry demands. Shirzad emphasized, “Congress went no further,” highlighting potential innovation risks from broader applications.
Historical trends show that uncertainties in U.S. stablecoin regulations can prompt a 10-15% decrease in U.S. DeFi activity. Coinbase’s feedback aims to ensure legislators recognize the balance between regulation and market innovation.
