Blockchain Association Backs Treasury’s Proposed Stablecoin Rules Under GENIUS Act

The Blockchain Association has formally backed federal agencies’ proposed rules for stablecoin issuers under the GENIUS Act, a major stablecoin regulatory framework passed last year. In a comment letter, the group expressed support for limiting customer identification requirements to direct transactions between issuers and customers in the primary market, keeping everyday peer-to-peer transactions outside these obligations.

Calls for Clearer Definitions and Flexibility

The association urged regulators to clarify key terms such as “account,” “customer,” and “digital asset service provider,” suggesting that one-time redemptions and unrelated activities be excluded from compliance requirements. It also asked agencies to avoid overlapping rules and allow issuers flexibility in how they verify customer information.

Coordination With Anti-Money Laundering Rules

The letter recommended aligning the timing of these new identification rules with related anti-money laundering regulations under the GENIUS Act. The Blockchain Association emphasized that implementation should balance strong safeguards with practical rules that continue to support innovation in the stablecoin industry.