Blockchain Association Supports GENIUS Act Rules for Stablecoin Issuers
The Block reports that the Blockchain Association has submitted a letter supporting rules proposed by federal agencies for stablecoin issuers under the GENIUS Act.
The Association supports limiting customer identity verification requirements to cases where issuers directly transact with customers in the primary market, while calling for clearer definitions and avoiding redundant compliance requirements.
The proposal requires approved payment stablecoin issuers to maintain effective customer identification programs. The Association agrees with the core design, believing it should apply only to holders with an account relationship with the issuer.
The Association emphasizes that identification obligations should not extend to downstream peer-to-peer transactions in the secondary market, as issuers do not mediate, facilitate, or approve such activities.
Driven by events, industry lobbying focuses on the details of stablecoin regulation implementation, with funding and compliance resources leaning towards clearly defined primary market boundaries. Beneficiaries include simplified compliance for issuers, while those under pressure face an excessive KYC burden.
Source: Public Information
ABAB AI Insight
The Blockchain Association, as a major lobbying group for the U.S. crypto industry, has long advocated for a clear federal framework. The GENIUS Act, signed in 2025, establishes a licensing and regulatory path for payment stablecoins and is currently in the rulemaking comment phase.
On the capital path, the Association guides regulators to focus on direct relationships through formal comments, shifting resources from broad monitoring to actionable primary market compliance. The motivation is to prevent rules from extending excessively to on-chain secondary transactions, protecting decentralized use while meeting anti-money laundering goals, and reducing the dual burden on issuers and users.
This is similar to industry feedback in previous SEC or FinCEN crypto rulemaking; the current phase is critical for stablecoins transitioning from legislation to implementation.
Essentially, this represents a regulatory change. Stablecoins are moving from a gray area into a licensing framework, with mechanisms to balance innovation and compliance by limiting the scope of customer identification programs, making primary issuance controllable while maintaining flexibility in secondary circulation, and reshaping the regulatory boundaries for U.S. dollar stablecoins.
ABAB News · Cognitive Law
- Primary market compliance, secondary market left blank
- Clear definitions to avoid redundant burdens
- Industry feedback shaping final rules.