Crypto
Home›Crypto›Regulation›Blockchain Association backs GENIUS Act rules for stab…
Blockchain Association backs GENIUS Act rules for stablecoin issuers
The group urged federal agencies to limit customer ID duties to direct issuer-customer transactions in the primary market, while asking for clearer definitions to avoid duplicative compliance.
The Blockchain Association has submitted a comment letter backing proposed U.S. federal rules for stablecoin issuers under the GENIUS Act, according to The Block. The letter responds to a joint proposal from the Treasury's Financial Crimes Enforcement Network, the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Comments on the proposed rules closed on Aug. 21, The Block reported. The association said it supports restricting customer identification requirements to direct issuer-customer transactions in the primary market, arguing that everyday peer-to-peer activity on secondary markets should not trigger the issuers' customer identification program obligations.
The GENIUS Act creates a framework that determines who can issue payment stablecoins, what they must be backed by, and how holders can redeem them. It requires permitted payment stablecoin issuers to maintain an effective customer identification program, and the association also called for clearer definitions of terms including "account," "customer," and "digital asset service provider."
The association recommended, for example, excluding one-off redemptions and activities unrelated to stablecoins, and urged agencies to avoid duplicative compliance requirements while allowing issuer flexibility in how they meet their obligations, The Block said.