Blockchain Association backs Treasury stablecoin rule but wants tighter definitions

The Blockchain Association has weighed in on Treasury’s proposed stablecoin rule. Its verdict amounts to: good start, now please fix the fine print. The crypto advocacy group filed a comment letter with the US Department of the Treasury on October 19, 2026. That was the final day for public input on the proposal. The rule would implement Section 3 of the GENIUS Act, the federal law that sets the ground rules for payment stablecoins. The association backed Treasury’s push for regulatory clarity. It also flagged several areas where it believes the draft could overreach. It wants the final version to track more closely with what Congress intended, without saddling platforms and foreign issuers with excessive liability or compliance costs. What the Blockchain Association actually asked for Treasury’s proposed rule was published around August 18, 2026. Its job is to define who counts as issuing and selling payment stablecoins in the US, and what is prohibited. A central piece is the definition of “issuance.” Treasury describes it as the initial transfer that grants someone rights to a payment stablecoin. The rule applies when either the issuer or the recipient is in the US. Its letter f...