Coinbase Institute

Read it here: coinbase.com/public-policy/…

The U.S. tax code was built for paper-era money, not onchain finance. Treating digital assets as property means every stablecoin payment and gas fee can be a taxable event—and @Coinbase has already seen a 34% jump in crypto tax support inquiries this year vs. last. It is time to modernize the rules. Our new paper lays out practical reforms on information reporting, payment stablecoins, and de minimis relief so tax policy supports, rather than penalizes, everyday digital asset use under frameworks like GENIUS.

Read our explainer here: coinbase.com/public-policy/…

The internet defaults to ads, subscriptions, and bundles because small payments have always been uneconomical. Stablecoin rails + x402 could change that—letting users and AI agents pay tiny amounts for exactly what they need. Pay-per-use AI, microwork, niche data, pay-per-article. This opens the door to broader participation in the digital economy

2/ The remaining task is a familiar one for policymakers: define when technically final onchain transactions become legally final, and calibrate collateral, liquidity, and insolvency rules to reflect shorter, safer exposure windows. Read more here: coinbase.com/public-policy/…

1/ Settlement finality—the legal moment when a transfer becomes unconditional and irrevocable—is central to financial stability, and blockchains change how we deliver it. Our new Coinbase Institute piece, Settlement Finality Onchain, shows how atomic settlement removes the T+N exposure window, how technical finality on major proof-of-stake networks creates stronger economic guarantees than centralized ledgers, and how always-on public blockchains reduce operational and liquidity risks tied to business-hour settlement and single points of failure.

3/ And Cong emphasizes: shifts in asset holdings don't necessarily contract credit—they may reflect reallocation to more efficient intermediaries. He also reminds that his paper explicitly acknowledges residual risks remain (comparable to other financial institutions and innovations), contrary to banking claims it describes stablecoins as risk-free. The full correction can be found at: linwilliamcong.com

2/ Prof. Cong just issued a correction to these banking group mischaracterizations of his work. Key reminders and clarifications: stablecoin yield only threatens bank deposits above 6% (far above current levels); GENIUS design constraints are central to his analysis; and payments adoption ≠ deposit displacement without explicit behavioral mechanisms.

1/ Cornell Professor Lin William Cong released a December paper finding that well-regulated GENIUS stablecoins can enhance bank operations, strengthen deposit competition, and support financial stability—corroborating recent Coinbase Institute research on the same topics. A banking trade group recently attempted to reframe his findings. Who better than Cong to correct these misreadings and mischaracterizations of his own work.

The paper can be found here: coinbase.com/public-policy/…

There’s a significant (and growing) problem with global wealth creation. For decades, income growth from capital has dramatically outpaced that from labor, but capital ownership remains a privilege of the few. Roughly two-thirds of adults on earth are excluded from capital markets due to access barriers and frictions. Our new paper shows how tokenization could help billions of unbrokered savers turn a smartphone into a gateway to diversified, global ownership.