Blockchain Association Supports GENIUS Act Stablecoin Issuer Rules, Urges Narrowing Customer Identification Scope

On August 25, the Blockchain Association submitted a comment letter regarding the stablecoin issuer rules under the GENIUS Act, jointly proposed by the U.S. Treasury's Financial Crimes Enforcement Network, the Office of the Comptroller of the Currency, and the Federal Reserve. The association supports limiting Customer Identification Program (CIP) obligations to transactions where issuers deal directly with customers in the primary market, and argues that these obligations should not extend to peer-to-peer transfer activities in the secondary market.

Additionally, the association urged regulators to further clarify definitions of "account," "customer," and "digital asset service provider," exclude non-recurring activities such as one-time redemptions, and avoid duplicative compliance burdens with anti-money laundering rules. The association stated that the implementation of the rules should balance stablecoin safety guarantees, operational feasibility, and room for industry innovation.

[TechFlow]