Coinbase: Treasury, Stop Overcomplicating Stablecoins!🚨

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Coinbase is basically saying, “Hey, let’s not turn the GENIUS Act into a bureaucratic nightmare!” 🧩

 

Coinbase has urged the U.S. Treasury Department to align its upcoming rules for the GENIUS Act with Congress’s original goals. I mean, who knew the Treasury was a fan of “overreach”? 🤷‍♂️

Coinbase raised concerns about potential overreach in the law’s implementation. The company emphasized that the rules should only address stablecoin issuers, not unrelated sectors like non-financial software or blockchain validators. Because who wants to regulate non-financial software? 🤔

Coinbase: Let’s Not Turn the GENIUS Act Into a Jumble of Confusion 🧩

Coinbase requested that the Treasury adopt a narrow interpretation of the GENIUS Act. The company believes the regulations should focus solely on stablecoin issuers, as these are the entities responsible for maintaining the stability of digital currencies. 🪙

According to Coinbase, extending the rules to non-financial software and blockchain protocols would create unnecessary complications. Like, really? We’re already dealing with enough chaos. 🌪️

Faryar Shirzad, Coinbase’s Chief Policy Officer, stressed the importance of adhering closely to the text of the bill. He argued that the law’s clear intent was to regulate stablecoin issuers, not platforms offering services like loyalty programs or open-source protocols. Because loyalty programs are clearly a threat to national security. 🛡️

By focusing on stablecoins, the Treasury would avoid stifling innovation in other parts of the crypto ecosystem. Or, as I like to call it, “letting the rest of the internet breathe.” 😅

We submitted ‘s response to ‘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…

– Faryar Shirzad (@faryarshirzad) 🙃

Coinbase further expressed concern that any overreach could harm U.S. competitiveness in the global crypto market. The company’s feedback underscores the need for a balanced approach that supports stablecoin development while avoiding excessive regulation in unrelated areas. Because nothing says “global leader” like a 100-page regulatory maze. 🧭

Coinbase: Don’t Mess With Our Loyalty Programs! 🎁

Coinbase raised concerns about the GENIUS Act’s interest-payment prohibition being applied to loyalty and rewards programs. The company believes the prohibition should only affect stablecoin issuers directly, not exchanges or third-party platforms. Because who doesn’t want to reward their users? 💸

The company argues that rewards programs are essential to the functioning of many exchanges and crypto platforms. By including third-party rewards under the interest-payment rule, the Treasury might unintentionally harm businesses that offer these services. Like, really? You’re gonna penalize good customer service? 🤬

In its response, Coinbase clarified that it does not oppose stablecoin regulations but seeks clear guidelines. The company believes that by sticking closely to the law’s intent, the Treasury can help support innovation while ensuring stability in the market. Or, as I call it, “don’t make me cry.” 😢

Coinbase: Tax Stablecoins Like Cash, Not a Mystery! 💸

Coinbase also suggested that payment stablecoins should be treated as cash equivalents for tax and accounting purposes. The company argued that this would better align their function as digital representations of fiat currencies. Because who wants to pay taxes on a digital dollar? 🤷‍♀️

Stablecoins are widely used as a stable store of value and should be recognized as such in tax law. By classifying stablecoins as cash equivalents, Coinbase believes the tax burden on businesses and individuals will reduce. Finally, a tax break for the digital age! 🎉

The company urged the Treasury and the IRS to adopt a low-burden approach to tax issues surrounding payment stablecoins. This would make stablecoin transactions simpler and more efficient for users and businesses alike. Because who has time for complicated tax forms? 🕒

Coinbase’s tax recommendation is part of its broader goal to encourage favorable regulations for the crypto industry. The company hopes that clear and supportive tax policies will help establish the U.S. as a global leader in digital finance. Or, as I like to say, “let’s not make it harder than it needs to be.” 🧠

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2025-11-06 17:31