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US Stablecoin Regulation: Coinbase CPO Highlights Key Considerations for Congress

In light of recent developments regarding stablecoin legislation, Coinbase's Chief Policy Officer, Faryar Shirzad, has provided critical insights into what US Congress should avoid in its regulatory approach.

Following the passage of the GENIUS Act, which aims to bolster the US dollar and encourage digital asset innovation, there are growing concerns about the impact of traditional banking interests on new legislation.

Shirzad cautioned against undermining the bipartisan goals set forth in the GENIUS Act, warning that unfavorable amendments could stifle innovation and drive it offshore.

He emphasized the need to protect consumer interests, arguing against measures that could siphon funds from consumers based on unverified claims about deposit risks.

Highlighting the role of stablecoins in enhancing transaction efficiency, Shirzad noted that banks themselves are among the major adopters of these digital assets.

He also raised concerns about vague regulatory authorities, stating that unclear enforcement could ultimately lead to the prohibition of lawful activities in the crypto space.

Moreover, Shirzad urged lawmakers to refrain from enacting legislation that disrupts existing lawful businesses and partnerships within the stablecoin ecosystem.

By establishing precise statutory guidelines, Congress could ensure that it does not retroactively invalidate legitimate commercial agreements.

Finally, the CPO called on Congress to heed the opinions of millions of American investors in cryptocurrencies, emphasizing that stablecoins offer significant opportunities for modernizing payments and strengthening the US economy.

As Congress navigates these complex issues, clear rules will be essential for fostering innovation rather than limiting it.