Blockchain Association Backs Stablecoin Regs with Practical Twist

The Blockchain Association has expressed its support for the proposed stablecoin issuer regulations in the U.S. under the GENIUS Act, calling for better clarity and practicality of compliance requirements.

The association filed a comment letter on Friday in response to proposals from various federal bodies, including the Financial Crimes Enforcement Network and the Office of the Comptroller of the Currency.

The GENIUS Act developed a framework for payment stablecoins, specifying which entities are allowed to issue them and how customers can redeem their coins. The legislation requires approved issuers to establish a reliable system of customer identification (CIP).

The Blockchain Association believes that the scope of identification should be limited to primary market transactions between a stablecoin issuer and a customer, shielding issuers from having to ascertain the identity of those who make secondary market transactions.