Stablecoin Bill: Coinbase Policy Lead Makes Case for GENIUS Act Passage

Key Insights:

• Coinbase’s Chief Policy Officer, pointed out that implementing stablecoin legislation is a matter of national urgency
• Apart from GENIUS Act, there is the STABLE Act that communicates consumer protection, financial stability, and compliance
• Market participants, users and issuers are stepping into a revolutionized stablecoin era.

There is much ongoing controversy over the stablecoin Guiding and Establishing National Innovation (GENIUS) Act bill, which US lawmakers are looking to pass into law.

Faryar Shirzad, Coinbase’s Chief Policy Officer, recently commented on the matter, pointing out that implementing stablecoin legislation is a matter of national urgency.

Coinbase’s Big Take on GENIUS Act

The Senate delayed passing the GENIUS Act prior to the Cloture vote scheduled for May 19. This includes an instance when it failed to pass a procedural vote.

The situation was even linked to President Donald Trump’s deepening involvement in crypto markets and his ties to the USD1 stablecoin.

Shirzad appeared on X on May 19 to discuss the GENIUS Act and highlight the possibility that the future of finance is hinged on blockchain technology.

Moreso, the Coinbase executive pointed to a need for the United States to have a “trusted, digitally native US dollar to compete in an increasingly onchain global economy.”

In his opinion, the GENIUS Act is nowhere near perfect, but it still provides enough framework to ensure that US dollar stablecoins remain the currency of choice on-chain.

Shirzad referred to existing USD-pegged stablecoins like USDT and USDC for transactions outside the US.

With the introduction of federal rules, it is more likely that these stablecoins will remain in the US.

Ultimately, he pointed out that this GENIUS Act can increase global demand for US government debt.

This move could lower borrowing costs while also reinforcing the USD’s role as the world’s reserve currency.

Coinbase Policy Lead identified the massive recognition and acceptance of the stablecoin sector from several leading payment and technology firms.

In retrospect, he advised the Congress to act appropriately.

“The GENIUS Act is about more than innovation—it’s economic statecraft. It secures the dollar’s dominance, supports fiscal strength, and keeps the US at the center of global finance. The Senate must act,” Shirzad concluded.

Need for Congress to Act

According to Eleanor Terrett, some Senate Banking Committee staffers are opposed to the GENIUS Act.

As some puts it, this bill is a blueprint for “Trump crypto corruption,” a position that may affect its passage.

STABLE Act and Expectations from Coinbase and Others

It is worth noting that this is not the first time the lawmakers on Capitol Hill have been working on legislation for the stablecoin niche.

U.S. Congressman Tom Emmer once interrogated former US SEC Chair Gary Gensler, accusing him of inconsistencies in regulating stablecoins.

Another stablecoin legislation in the works is the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act.

It is a proposed bill that establishes a regulatory framework for payment stablecoins.

It lists details like the requirements for issuers and addresses issues like reserve custodians and consumer protection.

STABLE Act is focused on achieving consumer protection, financial stability, and compliance.

Since the Act mandates that stablecoin issuers maintain 1:1 reserves, stablecoins can be redeemed at face value.

These years are guaranteed to have robust regulatory oversight and compliance.

Implications for Market Participants, Users, and Issuers

Users, issuers, and market participants, such as payment and technology firms, are about to enter a revolutionized era that encourages operation and innovation in the stablecoin space.

Most of these firms will indirectly receive the support they require to expand their blockchain-based operations.

These firms are also about to conveniently secure a position to lead in the global on-chain economy with a functional stablecoin bill.