Overview
- Coinbase submitted a formal comment this week urging the U.S. Treasury to adhere closely to the statute as it drafts GENIUS Act rules.
- The company asked regulators to exclude non‑financial software, blockchain validators, and open‑source protocols from the law’s scope because they do not issue stablecoins.
- Coinbase said the Act’s ban on paying interest should apply only to issuers, opposing banking groups urging Treasury to extend the prohibition to exchanges and other intermediaries.
- It recommended treating payment stablecoins as cash equivalents for tax and accounting purposes and called for alignment with IRS guidance.
- Treasury, led by Secretary Scott Bessent, is reviewing public comments as it prepares implementing rules under a law that sets federal standards for reserves, audits, and risk management.