Coinbase is significantly ramping up its lobbying efforts in Washington D.C. to shape forthcoming U.S. stablecoin legislation, with its revenue from the sector projected to potentially multiply up to seven times based on the final regulatory framework. According to analysis from Bloomberg Intelligence, stablecoin-related activities accounted for approximately 19% of Coinbase's total net revenue last year, and this figure could see dramatic growth depending on legislative outcomes.
The lobbying campaign is focused on several legislative drafts circulating in Congress, including the so-called "Genius Act," which was signed into law by President Donald Trump in July. This act establishes a formal regulatory framework for stablecoins, requiring issuers to maintain 1:1 backing with assets like U.S. Treasuries and adhere to stringent anti-money laundering measures. Analysts Paul Gulberg and Samuel Radowitz of Bloomberg Intelligence project that Coinbase's stablecoin revenue could grow between two and seven times its current level, with the upper end of the spectrum contingent upon "favorable provisions" in the final law.
A key variable identified for maximizing growth is the explicit ability for platforms to pay out rewards or interest on stablecoin holdings, a feature that would significantly enhance product attractiveness. Conversely, restrictive legislation could cap growth at the lower end of the projection. Coinbase's lobbying aims to secure a framework that enables growth, advocating for clear rules on issuer qualifications (for both banks and non-banks), pragmatic reserve asset management, interoperability standards, and federal preemption over state laws to streamline operations across all 50 states.
The outcome of this legislative process carries high stakes, not only for Coinbase but for the broader cryptocurrency industry. A well-crafted U.S. law could set a global standard, provide a competitive edge to compliant American companies, and accelerate the adoption of stablecoins for everyday payments and DeFi. The lobbying efforts underscore a critical juncture where policy and finance intersect, with the final framework poised to shape the trajectory of digital dollar alternatives for years to come.
