What happened?
Coinbase asked the US Treasury to keep GENIUS Act rules tight and true to Congress’s original intent. It warned against broad definitions that would pull in developers, validators, or open-source projects and said exchanges’ rewards aren’t the same as banned interest. The company also pushed for payment stablecoins to be treated like cash equivalents for simpler tax and accounting rules.
Who does this affect?
Stablecoin issuers and big exchanges like Coinbase are directly affected by how the rules are written. Developers, blockchain validators, and open-source protocol teams could avoid new regulation if the Treasury follows Coinbase’s narrow interpretation. Everyday users, DeFi platforms, and international businesses that use dollar-backed stablecoins would feel the ripple effects through access, fees, and available services.
Why does this matter?
How the Treasury implements the GENIUS Act will determine whether US-issued stablecoins stay competitive globally and how easy it is to build products around them. Clear, narrow rules would lower compliance costs and encourage innovation in the US, while overbroad rules could push projects and liquidity offshore. Those outcomes will influence market liquidity, adoption rates, pricing in crypto markets, and the dollar’s role in digital payments.