Coinbase Calls for Narrow Interpretation of GENIUS Act, Protecting Stablecoin Innovation

Coinbase argues that the U.S. Treasury should implement a limited scope for the GENIUS Act, focusing on financial entities directly involved in stablecoin issuance. The company suggests excluding software developers, blockchain validators, and open-source protocols from regulatory oversight. They propose treating payment stablecoins as cash equivalents for simplified tax and accounting treatment, arguing this will promote innovation and avoid hindering U.S. leadership in the digital asset sector. Their concerns stem from the potential for excessive regulation to hinder innovation and impact U.S. competitiveness.