Blockchain Association challenges proposed GENIUS Act rules
- The Blockchain Association has submitted comments on the US Treasury’s proposed rules implementing Section 3 of the GENIUS Act.
- The submission addresses how Treasury should interpret and apply the law’s requirements for payment stablecoin issuers.
- The comments could influence the final regulatory framework, depending on Treasury’s response to industry feedback.
The Blockchain Association has urged the US Treasury to narrow proposed stablecoin rules under Section 3 of the GENIUS Act.
Its 19 October comment letter asks Treasury to clarify which digital asset businesses qualify as regulated service providers.
“The BA supports Treasury’s core objective in promulgating the Proposed Rule: ensuring that payment stablecoins in the United States are safe, trustworthy, and issued by regulated companies that maintain adequate reserves,” the association wrote.
The association argues that companies trading their own assets should not automatically face the same obligations as businesses serving customers.
It also wants Treasury to distinguish new stablecoin issuance from secondary-market transfers, routine wallet movements and settlement activity.
The letter calls for clear exclusions covering self-custody software, blockchain validators and liquidity providers operating decentralised systems.
The association further recommends simpler checks for foreign stablecoin issuers and more practical standards for identifying users’ locations.
Treasury’s final rules will determine how these proposed requirements apply to stablecoin issuers and digital asset service providers across the United States.
