GENIUS Act: Blockchain Association Seeks Clearer DeFi, Stablecoin Rules

The Blockchain Association has submitted a 26-page comment letter urging the U.S. Treasury to clarify how its proposed GENIUS Act rules would apply to decentralized finance, stablecoin trading platforms and foreign-issued payment tokens. Summary Blockchain Association filed a 26-page response seeking clearer Treasury rules for stablecoin intermediaries and decentralized infrastructure. The group wants ordinary secondary-market trading excluded from liability for knowingly participating in unlawful stablecoin issuance. Foreign stablecoin checks should rely on official regulatory records instead of extensive investigations, the association argues. Permissionless protocols should not face new wallet identification obligations when counterparties’ locations cannot reasonably be determined. Treasury’s October 19 consultation deadline has passed, while the proposed rules remain subject to review before adoption. According to the industry’s October 19 submission, the group supports Treasury’s plan to regulate payment stablecoin issuance but wants clearer definitions of digital asset service providers and limits on liability for unlawful issuance. The letter questions whether some complian...