Blockchain Association supports U.S. Treasury’s stablecoin rules under GENIUS Act

Blockchain Association backs proposed stablecoin rules

The Blockchain Association, a U.S. crypto industry group, has publicly supported proposed federal rules for stablecoin issuers under the GENIUS Act. The group submitted a formal letter on August 21, 2026, backing the Treasury Department’s plan to require customer identification only for direct transactions between issuers and customers.

The GENIUS Act is a U.S. law passed last year that sets rules for who can issue stablecoins—digital currencies designed to keep a steady value, usually tied to a traditional currency like the U.S. dollar. The law requires stablecoin issuers to have a customer identification program to help prevent illegal activities like money laundering.

The proposed rules were jointly created by five U.S. financial agencies, including the Treasury’s Financial Crimes Enforcement Network and the Federal Reserve.

Key details of the proposal

• The Blockchain Association supports limiting customer identification requirements to direct transactions between stablecoin issuers and their customers.
• Peer-to-peer transactions on secondary markets would not require customer identification from stablecoin issuers.
• The group called for clearer definitions of terms like "account," "customer," and "digital asset service provider."
• The association urged regulators to avoid duplicate compliance requirements and allow flexible approaches to verifying customer information.

What the Blockchain Association said

The Blockchain Association submitted a comment letter supporting the proposed rules. The group stated that the GENIUS Act created a "landmark framework for payment stablecoins" and that its implementation should balance "strong safeguards, workable rules, and room for continued innovation."

The association recommended excluding one-time redemptions and activities unrelated to stablecoins from the customer identification requirements. It also suggested coordinating the timing of these rules with related anti-money laundering regulations under the GENIUS Act.

What is confirmed

• The Blockchain Association submitted a formal letter supporting the proposed rules on August 21, 2026.
• The proposed rules were created by five U.S. federal agencies under the GENIUS Act.
• The GENIUS Act requires stablecoin issuers to maintain a customer identification program.
• The Blockchain Association supports limiting customer identification to direct transactions in the primary market.

What is still unclear

• The final definitions of key terms like "account," "customer," and "digital asset service provider" have not been settled.
• It is not yet confirmed how regulators will coordinate the timing of these rules with other related regulations under the GENIUS Act.

Why this matters for stablecoin users

The proposed rules aim to create a clearer legal framework for stablecoins in the U.S. By limiting customer identification requirements to direct transactions, everyday users trading stablecoins peer-to-peer would not be subject to the same identification rules as those dealing directly with issuers. This could help maintain privacy for regular users while still addressing regulatory concerns about illegal activities.

Sources

• The Block
• Blockchain Association comment letter
• Proposed rules document