{"id":56161,"date":"2025-11-06T12:00:35","date_gmt":"2025-11-06T09:00:35","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=56161"},"modified":"2025-11-06T10:30:02","modified_gmt":"2025-11-06T07:30:02","slug":"coinbase-genius-act-treasury-warning","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/coinbase-genius-act-treasury-warning\/","title":{"rendered":"Coinbase Warns Treasury on GENIUS Act Regulations"},"content":{"rendered":"<p data-start=\"532\" data-end=\"902\">Cryptocurrency <a href=\"https:\/\/coinengineer.net\/blog\/category\/news\/exchange-news\/\">exchange<\/a> <strong>Coinbase<\/strong> Global has called on the U.S. Department of the Treasury to ensure that regulations under the <strong>GENIUS Act,<\/strong> enacted in July 2025, remain closely aligned with Congress\u2019 intent. Coinbase emphasized that the Treasury should avoid imposing unnecessary requirements on non-financial software, blockchain validators, and open-source protocols.<\/p>\n<p data-start=\"904\" data-end=\"1273\">Coinbase Policy Officer Faryar Shirzad stated on X.com, \u201cImplementation 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.\u201d This statement highlights the importance of supporting innovation while promoting stablecoins as a payment tool.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/coinbase-genius-act-treasury-warning\/#Impact_on_Innovation_and_Stablecoin_Recommendations\" title=\"Impact on Innovation and Stablecoin Recommendations\">Impact on Innovation and Stablecoin Recommendations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/coinbase-genius-act-treasury-warning\/#GENIUS_Act_Federal_Framework_and_Requirements\" title=\"GENIUS Act: Federal Framework and Requirements\">GENIUS Act: Federal Framework and Requirements<\/a><\/li><\/ul><\/nav><\/div>\n<h3 data-start=\"1280\" data-end=\"1337\"><span class=\"ez-toc-section\" id=\"Impact_on_Innovation_and_Stablecoin_Recommendations\"><\/span>Impact on Innovation and Stablecoin Recommendations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1339\" data-end=\"1704\">Building on its call for focused regulation, Coinbase urged regulators to interpret the law narrowly. The company noted that the GENIUS Act\u2019s prohibition on interest payments applies only to stablecoin issuers, not to intermediaries or exchanges offering loyalty rewards. \u201cTreating third-party rewards as prohibited \u2018benefits\u2019 would rewrite carefully drawn lines and contradict the law\u2019s intent,\u201d the company warned.<\/p>\n<p data-start=\"1706\" data-end=\"2118\">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, \u201cPayment 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.\u201d Finally, the company encourages the Treasury and IRS to adopt a pragmatic, low-cost approach regarding stablecoin taxation and regulation.<\/p>\n<h3 data-start=\"2125\" data-end=\"2177\"><span class=\"ez-toc-section\" id=\"GENIUS_Act_Federal_Framework_and_Requirements\"><\/span>GENIUS Act: Federal Framework and Requirements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"2179\" data-end=\"2470\">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.<\/p>\n<p data-start=\"2472\" data-end=\"2754\">Coinbase\u2019s 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.<\/p>\n<p data-start=\"2472\" data-end=\"2754\"><em>Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don\u2019t forget to follow us on\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener\">Telegram<\/a>,\u00a0<a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener\">YouTube<\/a>\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\">Twitter<\/a>\u00a0for the latest news and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019 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<\/p>\n","protected":false},"author":36,"featured_media":42466,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[657,2],"tags":[192,151,10690,6033,14489,488,25353,5380,7672],"class_list":["post-56161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-en","category-news","tag-blockchain","tag-coinbase","tag-crypto-innovation","tag-crypto-regulation","tag-genius-act","tag-stablecoin","tag-stablecoin-tax","tag-treasury-department","tag-us-crypto"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Coinbase Warns Treasury on GENIUS Act Regulations - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Coinbase urges Treasury to align GENIUS Act rules with Congress\u2019 intent, warning on potential impacts for stablecoin innovation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/coinbase-genius-act-treasury-warning\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coinbase Warns Treasury on GENIUS Act Regulations - 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