Key Points
- •The GENIUS Act aims to modernize U.S. payment systems through stablecoin regulation.
- •Coinbase commits to implementing these regulations to ensure safety and innovation.
- •The Act primarily affects USD-backed stablecoins and DeFi protocols reliant on them.
Coinbase urges innovation-friendly regulation during the U.S. Treasury's GENIUS Act rollout, a new stablecoin framework enacted in July 2025.
The GENIUS Act could reshape the U.S. stablecoin landscape, affecting market dynamics and regulatory compliance, with Coinbase advocating for pragmatic execution to balance innovation and safety.
The GENIUS Act and Its Implications
The GENIUS Act impacts USD-backed stablecoins like USDC and USDP. It opens pathways for federally recognized issuers to scale operations. The bill aims to modernize payment infrastructure without federal funding implications.
While not affecting Bitcoin or Ethereum directly, the Act influences DeFi protocols reliant on USD stablecoins. Coinbase is adapting its systems to support permitted issuers, shifting DeFi TVL to compliant stablecoins.
Long-term Impact of the GENIUS Act
Long-term, the GENIUS Act could result in market standardization similar to past European regulations. Coinbase collaborates with U.S. authorities to refine guidelines, reflecting the evolving cryptocurrency landscape. Experts anticipate that the GENIUS Act will drive financial transparency and technological progression for U.S.-based crypto markets, fostering a robust environment for both startups and large institutions.