Yeliz Akmaca 
Cryptocurrency exchange Coinbase Global has called on the U.S. Department of the Treasury to ensure that regulations under the GENIUS Act, enacted in July 2025, remain closely aligned with Congress’ intent. Coinbase emphasized that the Treasury should avoid imposing unnecessary requirements on non-financial software, blockchain validators, and open-source protocols.
Coinbase Policy Officer Faryar Shirzad stated on X.com, “Implementation rules should stick to the clear purpose of the bill text and ensure that U.S.-issued stablecoins maintain flexibility and competitiveness needed to become a global payment standard.” This statement highlights the importance of supporting innovation while promoting stablecoins as a payment tool.
Impact on Innovation and Stablecoin Recommendations
Building on its call for focused regulation, Coinbase urged regulators to interpret the law narrowly. The company noted that the GENIUS Act’s prohibition on interest payments applies only to stablecoin issuers, not to intermediaries or exchanges offering loyalty rewards. “Treating third-party rewards as prohibited ‘benefits’ would rewrite carefully drawn lines and contradict the law’s intent,” the company warned.
Moreover, emphasizing the practical implications of the law, Coinbase recommended that payment stablecoins be treated as cash equivalents for tax and accounting purposes. Shirzad added, “Payment stablecoins reflect the stability of fiat currency. They also provide similar utility in their design and function. Tax practices should recognize this fact. Tax practices should recognize this fact.” Finally, the company encourages the Treasury and IRS to adopt a pragmatic, low-cost approach regarding stablecoin taxation and regulation.
GENIUS Act: Federal Framework and Requirements
The GENIUS Act, passed in July 2025, establishes a federal framework for stablecoins in the U.S. The law mandates that stablecoins be fully backed by U.S. dollars or equivalent liquid assets, requires annual audits for certain issuers, and provides guidance for foreign stablecoin issuers.
Coinbase’s warning underscores the need to implement regulations without stifling innovation, ensuring the U.S. maintains a leading position in the crypto ecosystem. The guidance also seeks to guarantee that developments in stablecoin payments align with global financial systems.
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