Overview
- Coinbase’s comment letter urges Treasury to limit any interest prohibition to stablecoin issuers, arguing the agency lacks authority to extend it to non‑issuers such as exchanges or affiliates.
- Banking groups led by the Bank Policy Institute, joined by the ABA and 52 state associations, call for a sweeping ban that covers payments made directly by issuers or indirectly through partners.
- BPI cites the risk of large deposit migration from banks, estimating potential outflows of up to $6.6 trillion if stablecoin interest is permitted.
- Coinbase also asks regulators to exempt non‑financial software, blockchain validators, and open‑source protocols, and to treat payment stablecoins as cash equivalents for tax and accounting.
- The public comment round has closed, with Treasury expected to draft formal rules in 2026 under the GENIUS Act timeline pointing to enforcement in late 2026 or early 2027.