Blockchain Association Seeks Clear Rules for Stablecoin Issuers Under GENIUS Act

The Blockchain Association has called on federal regulators to establish clear and coordinated rules for stablecoin issuers under the GENIUS Act.

The law, which was signed into effect earlier this year, establishes a framework for payment stablecoins and requires issuers to obtain authorization at either the federal or state level.

The Blockchain Association argues that regulatory overlap should be avoided, particularly in Know Your Customer (KYC) requirements. They recommend limiting KYC obligations to direct transactions between issuers and their customers, rather than extending them to every transaction in the secondary market.

The association's primary concern is that duplicative or conflicting requirements could create unnecessary compliance burdens for businesses, stifling innovation and potentially driving stablecoin activity offshore.