Coinbase Pushes Back Against GENIUS Act Amendments, Citing Threats to U.S. Crypto Innovation

Coinbase is taking a stand — again.
The leading U.S. crypto exchange has voiced strong opposition to recent GENIUS Act amendments, saying the changes could cripple blockchain innovation and undermine the country’s competitiveness in digital finance, according to Coincu.

What’s at Stake

The GENIUS Act — short for Guarding Effective National Innovation for U.S. Stability — is a proposed set of amendments aimed at tightening oversight of digital assets, stablecoins, and consumer protection within the crypto ecosystem.

While lawmakers argue the bill will improve transparency and safeguard investors, Coinbase believes several provisions are too restrictive, warning they could push American blockchain developers and exchanges overseas.

“Overregulation doesn’t protect consumers — it eliminates their choices,” a Coinbase spokesperson told Coincu.

Coinbase’s Core Concerns

Coinbase’s main objections center around:

1. Ambiguous Definitions: The bill reportedly expands the definition of “digital asset intermediary,” potentially classifying even non-custodial software providers.
2. Operational Burdens: New disclosure rules could force U.S.-based platforms into heavy compliance models unsuitable for decentralized systems.
3. Innovation Risks: The company warns that “well-intended but rigid regulation” may stifle emerging sectors like DeFi and Web3 tokenization.

Coinbase emphasizes that it supports smart regulation — not policies that “punish innovation or conflate technology with financial misconduct.”

A Clash Between Innovation and Oversight

This isn’t the first time Coinbase has clashed with Washington. The exchange has consistently advocated for clear crypto frameworks that balance oversight with growth.
The GENIUS Act amendments, however, have reignited fears of regulatory overreach that could replicate the same confusion that drove developers to Europe and Asia in past years.

Analysts say the confrontation reflects a deeper debate over how much control the U.S. government should exert over decentralized technologies.

“The GENIUS Act may be well-meaning, but its execution could be disastrous,” said one policy expert cited by Coincu.

Global Implications

If the GENIUS Act passes in its current form, U.S. crypto companies could face stricter reporting and consumer verification rules than many foreign competitors — potentially reducing America’s role in the global digital economy.

Meanwhile, other jurisdictions — such as the EU with MiCA and Singapore’s digital asset frameworks — are moving forward with more balanced regulation that invites innovation rather than deterring it.

Future Outlook

Coinbase has urged lawmakers to reconsider the proposed changes, calling for collaboration with industry leaders to craft legislation that ensures consumer safety without suffocating innovation.
The exchange says it remains committed to working with regulators but warns that “if the U.S. doesn’t lead in crypto innovation, someone else will.”

The debate over the GENIUS Act could shape not only U.S. crypto policy — but the future of blockchain leadership worldwide.