Coinbase Urges U.S. Treasury to Classify Stablecoins as Cash, Not Debt

Coinbase has called on the U.S. Department of the Treasury to recognize payment stablecoins as cash equivalents rather than debt instruments.

The exchange argues that stablecoins are designed for instant redemption at face value. Carry no interest or maturity, and function as digital forms of money—not as credit or investment products.

In its recommendation, Coinbase warned that misclassifying stablecoins as debt could create accounting and tax complications, discouraging their use in mainstream commerce. The company emphasized that proper regulatory treatment would help strengthen consumer confidence and promote innovation in digital payments. By treating stablecoins like cash, regulators could pave the way for broader adoption of blockchain-based settlement systems and accelerate the modernization of the global financial infrastructure.

Clever Robot News Desk 8^th November 2025