Amidst ongoing discussions about stablecoin regulation, Coinbase challenges the prevailing view that these digital assets pose a threat to traditional banking systems. The company’s analysis suggests these concerns may be overblown, highlighting the global utility of stablecoins and their evolving role in the financial landscape. Coinbase emphasizes that while stablecoins are used for international transactions, they don’t directly compete with American banks. 60% of stablecoin transactions occur on decentralized finance (DeFi) platforms, acting as a separate layer in the financial system outside traditional banking systems. The company argues this suggests a complementarity rather than competition between stablecoins and established banking institutions. Coinbase emphasizes that stablecoins primarily serve international markets for dollar exposure and hedging against local currency depreciation, providing solutions to underserved populations with limited access to formal financial services. 60% of transactions occur on DeFi platforms, highlighting the impact of decentralized finance. Coinbase calls for balanced regulation that recognizes stablecoins’ potential for innovation, particularly in strengthening the dominance of the US dollar in global finance. They acknowledge a growing market size of $5 trillion but emphasize most values remain outside US deposit accounts and digital settlement systems. They argue this minimizes the risk of significant impact on US bank deposits. Furthermore, Coinbase suggests that stablecoins could even provide benefits for community banks by extending their services to broader customer segments.