Coinbase Calls for Balanced Rules in Crypto Regulation
By John Nada·Nov 6, 2025·2 min read
Coinbase urges the US Treasury to align GENIUS Act regulations with congressional intent to foster innovation in the cryptocurrency space and avoid stifling growth.
Coinbase's Stand on the GENIUS Act
Coinbase, one of the leading cryptocurrency exchanges, is urging the US Treasury to carefully consider the regulations surrounding the GENIUS Act. This proposed legislation aims to create a framework for managing digital assets, but Coinbase believes that the rules must align with the original intentions of Congress. Striking a balance is crucial to ensure that the innovation in the crypto space isn’t stifled.
Why This Matters: The cryptocurrency industry has been growing rapidly, attracting many investors and users. Coinbase argues that overly strict regulations could hinder this growth, making it harder for businesses to operate and for consumers to access new technologies. With the rise of digital assets, it’s important for lawmakers to understand the unique nature of this market.
Many people may not realize that the GENIUS Act is intended to provide clearer guidelines for how cryptocurrencies should be treated under US law. It addresses issues like taxation and compliance, but Coinbase warns that if the rules are too restrictive, they could push innovation overseas. This is a significant concern because innovation drives economic growth and job creation.
In its letter to the Treasury, Coinbase emphasized that regulations should not only protect users but also encourage the development of new technologies. If the rules are too rigid, companies might choose to relocate to countries with friendlier regulations. This could lead to a loss of jobs and expertise in the US, which is not in the best interest of the economy.
A Call for Collaboration: Coinbase believes that collaboration between regulators and industry leaders is essential. By working together, they can create a regulatory environment that fosters innovation while ensuring consumer protection. This approach could lead to a thriving ecosystem where new ideas can flourish.
The cryptocurrency market is still in its infancy, and the rules created today will shape its future. Striking the right balance is vital. If regulations are too lenient, there’s a risk of fraud and misuse. Conversely, if they are overly harsh, it could stifle creativity and progress. Finding a middle ground is key.
In conclusion, Coinbase is advocating for a thoughtful and balanced approach to the GENIUS Act’s rulemaking process. The future of cryptocurrency in the US depends on regulations that promote innovation while protecting consumers. As the conversation continues, it’s clear that input from industry leaders will be crucial in shaping a positive outcome for the crypto community.