Blockchain Association Backs GENIUS Act Rules with Caveats

The Blockchain Association has expressed its support for proposed rules under the GENIUS Act, a landmark framework for stablecoin issuers. The industry group submitted a comment letter to federal agencies in response to their joint proposal.

The GENIUS Act sets out rules for who can issue payment stablecoins, what those tokens must be backed by, and how holders can redeem them. One key requirement is that permitted payment stablecoin issuers (PPSIs) maintain an effective customer identification program (CIP).

In its letter, the Blockchain Association backs limiting customer identification requirements to direct issuer-customer transactions in the primary market. This means everyday peer-to-peer transactions on secondary markets would fall outside the stablecoin issuers' CIP obligations.