Blockchain Association backs proposed GENIUS Act stablecoin rules

The Blockchain Association filed a letter supporting proposed GENIUS Act rules for stablecoin issuers. 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 proposed the rules jointly. The association submitted its letter on Friday. The comment period closed on Aug. 21. The GENIUS Act was signed into law last year. The act sets requirements for payment stablecoin issuers, including rules on issuance, token backing, and holder redemptions. Permitted payment stablecoin issuers must maintain an effective customer identification program. The association supports limiting those obligations to direct relationships between issuers and customers in primary markets. Peer-to-peer transactions in secondary markets would fall outside issuers' customer identification obligations under that approach. The association requested clearer definitions of account, customer, and digital asset service provider. It recommended excluding one-off redemptions and activities unrelated to stablecoins. It urged the agencies to avoid duplicative compliance requirements. It also asked the agencies to clarify that issuers can choose how to verify client information. The association proposed coordinating the effective date of the customer identification rules with separate anti-money laundering rules under the GENIUS Act. It said implementation should preserve strong safeguards, workable rules, and room for continued innovation.