Coinbase urges Treasury to keep GENIUS Act rules aligned with congressional intent

Coinbase submitted a detailed response to the U.S. Treasury Department, advocating that forthcoming rules for the GENIUS Act must strictly adhere to congressional intent and avoid imposing requirements beyond the statute's explicit commands. Coinbase warned that overreach could hinder innovation and undermine the goal of making the U.S. the global "crypto capital." Specifically, Coinbase requested a narrow reading of the law to exclude non-financial software, blockchain validators, and open-source protocols from its scope. Furthermore, the company argued that the interest-payment prohibition should only apply to stablecoin issuers, not to intermediaries offering loyalty rewards, stating that treating third-party rewards as interest would conflict with the statute's text. Finally, Coinbase recommended that payment stablecoins be treated as cash equivalents for tax and accounting purposes, urging a pragmatic, low-burden approach from the Treasury and IRS.

(Source：The Block)