Coinbase urges innovation and trust in U.S. Treasury interpretation of GENIUS Act

Coinbase has submitted its response to the U. S. Treasury’s advance notice of proposed rulemaking on the implementation of the GENIUS ￰0￱ firm has urged the ￰1￱ to enact precise, targeted regulations that support innovation, safeguard consumers, and establish the ￰2￱ a global leader in digital ￰3￱ crypto exchange stated that proper GENIUS implementation will accelerate the acceptance of stablecoins as a reliable payment method through federal monitoring of issuers, 100% reserve backing, and holder priority in ￰4￱ GENIUS Act establishes a legislative framework for regulating stablecoins and was passed into law in July ￰5￱ GENIUS Act establishes rules for foreign issuance, requires yearly audits for certain issuers, and mandates that stablecoins be fully backed by ￰6￱ or comparable liquid ￰7￱ urges ￰8￱ to protect GENIUS Act integrity The digital asset platform explained that a clear, comprehensive, and trust-building regulatory framework will increase the use of stablecoins in mainstream ￰9￱ submitted @coinbase 's response to @USTreasury 's request for comments on the implementation of the GENIUS ￰10￱ message is simple: GENIUS is landmark legislation designed to make the US the undisputed global leader in crypto and ￰11￱ make that happen, the… ￰12￱ — Faryar Shirzad 🛡️ (@faryarshirzad) November 5, 2025 Coinbase warned that the Treasury must not interpret GENIUS’s interest ban ￰13￱ approved payment stablecoin issuers (“PPSIs”) are prohibited by GENIUS from paying interest or yield in exchange for keeping or utilizing a ￰14￱ crypto exchange claimed that prohibition does not apply to “indirect” payments or non-issuer intermediaries.

“GENIUS makes the ￰15￱ undisputed global leader in crypto and ￰16￱ make that happen, the implementing regs must stick to the clear intent of the bill text and must ensure that US-issued stablecoins have the versatility.” – Faryar Shirzad , Chief Policy Officer, ￰17￱ digital asset exchange emphasized that treating loyalty schemes or third-party benefits as forbidden “interest” would go against the text and intent of the Act and rewrite Congress’s carefully constructed lines. Additionally, by eliminating market-based incentives that reduce payment costs and encourage merchants, that misinterpretation would harm ￰18￱ exchange stated that to fully realize the potential of American stablecoin markets, the Treasury must guarantee that U.

S.-issued stablecoins are ￰19￱ Treasury must also ensure ￰20￱ issuers have access to international ￰21￱ added that the Treasury should collaborate with other financial regulators to prevent fragmentation or disparate rules for similar ￰22￱ must be careful not to interfere with current efforts by Congress or other federal authorities, as GENIUS is one of only a few federal initiatives to give transparency in digital asset ￰23￱ rules for payment stablecoins Coinbase further suggested that, for accounting and tax purposes, payment stablecoins be regarded as cash ￰24￱ to Coinbase, payment stablecoins are a type of financial technology that mimics the functionality and stability of fiat ￰25￱ reality should be reflected in their tax ￰26￱ Treasury and the Internal Revenue Service (IRS) should take a “pragmatic, low-burden approach” to tax matters involving payment ￰27￱ claimed that the application of taxes is one underestimated factor influencing the ultimate acceptance of digital asset ￰28￱ this case, the crypto exchange urged that tax guidelines should be revised to take into account the GENIUS ￰29￱ exchange also emphasized that payment stablecoins should not be regarded as debt for tax reasons.

Additionally, the IRS should provide precise and clear guidelines prohibiting payment stablecoins from being classified as debt instruments under federal income tax ￰30￱ instance, brokers must submit Form 1099-DA to the IRS reporting transactions involving digital ￰31￱ submission form will include gross revenues starting on January 1, 2025, and cost basis starting in ￰32￱ guidance also requires that the cost basis for digital assets be tracked on a per-wallet basis starting in ￰33￱ claimed that the goal of the IRS guidelines is to standardize the calculation of taxable gains or losses from the sale of digital ￰34￱ your project in front of crypto’s top minds?

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