Blockchain Association seeks clearer GENIUS Act rules

• Blockchain Association urged US regulators to limit stablecoin KYC rules to direct issuer customers.
• The group submitted its comments on 21 August during the GENIUS Act rulemaking process.
• It also called for regulators to coordinate rules and allow zero-knowledge proof identity checks.

Blockchain Association has urged US regulators to create clearer rules for stablecoin issuers under the GENIUS Act.

The group wants customer identification requirements limited to direct transactions between stablecoin issuers and their customers.

Blockchain Association also asked regulators to avoid overlapping rules that could increase compliance costs for issuers.

The comments respond to proposed customer identification rules for permitted payment stablecoin issuers under the GENIUS Act.

The group argues that secondary-market trades should not create KYC duties for issuers without a direct customer relationship.

Blockchain Association also supports using zero-knowledge proofs to verify customers while limiting the personal data issuers need to store.

The association further called for agencies to coordinate their rulemaking timelines as regulators work to implement the federal stablecoin framework.