Congress vs. Stablecoins: 5 Hilarious Mistakes to Avoid

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Once upon a slightly bureaucratic Tuesday, after the nation’s very first stablecoin bill-affectionately known as the GENIUS Act, because who doesn’t like self-promotion in legislation-was signed into law, the CLARITY Act, intended to tidy up the crypto cosmos, hit a brick wall of congressional delays. The culprits? The traditional banking sector, apparently allergic to anything that moves faster than a paper check.

Enter stage left: Faryar Shirzad, Coinbase’s Chief Policy Officer and part-time whisperer to Congress, armed with five recommendations so critical that ignoring them might result in spontaneous outbreaks of confusion, mild hysteria, or both.

Coinbase CPO: Don’t Make Banks the Cool Kids

Shirzad’s first sage warning was not to undo the bipartisan wizardry of the GENIUS Act. Signed by President Donald Trump last year, it was meant to strengthen the dollar, nudge Americans toward Treasuries, and convince digital assets to stay home instead of gallivanting off to China.

Any meddling with the rewards framework should reinforce these goals rather than turning them into a sad footnote of lost opportunity. Consumer protection was also highlighted, in case Congress was planning on inventing “unverified fund extraction” as a new legislative sport.

Stablecoins are meant to make payments faster and cheaper, and banks love them almost as much as people love a free lunch. So fiddling with settled laws to give banks extra brownie points? Shirzad warns this would be “poor public policy” if the premise isn’t reliable-basically like giving a cat a job as a dog trainer.

Regulatory Landmines Ahead

Precision is key. Shirzad advises Congress against drafting regulations so vague that future administrations could interpret “Do not touch the cookies” as “Burn down the bakery.” Clear statutory lines are needed, preferably ones that won’t result in accidentally outlawing your grandmother’s lemonade stand.

He also stressed that laws shouldn’t throw a wrench into existing lawful businesses. The stablecoin ecosystem involves collaborations between issuers, platforms, and tech providers. Retroactive legislation that invalidates these arrangements is about as welcome as a skunk at a garden party.

Lastly, Shirzad reminded lawmakers to actually listen to voters. Banks may have political sway, but tens of millions of Americans are invested in crypto. Their opinions matter too, and ignoring them would be like trying to read tea leaves in a hurricane.

Stablecoins strengthen the dollar, increase demand for U.S. Treasuries, and modernize payments. They’re also going to be a big commercial opportunity for banks of all sizes. Congress should focus on clear rules that allow innovation to grow in America – not policies that push it offshore.

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2026-03-11 11:11