Blockchain Association Targets Stablecoin ID Rules
Regulators face pushback on uniform bank standards for digital currency identity checks. Industry data shows a mismatch between current rules and token circulation patterns.
The Blockchain Association submitted a formal request to federal regulators. The goal is to modify customer-identification requirements for stablecoins. The group argues that current bank-style rules do not fit digital assets. They cite the unique way tokens move between wallets and exchanges.
The proposal stems from the GENIUS Act framework. It limits Know Your Customer obligations to the primary market. This is where issuers transact directly with customers. The association supports this core structure in principle.
Industry Requests Specific Rule Exclusions
The group asked for a clearer definition of an "account." They also sought guidance on collecting customer data. The Blockchain Association wants regulators to exclude four transaction types. One-time stablecoin redemptions are the primary target for exclusion.
The argument rests on the nature of digital circulation. Traditional requirements are written for depository institutions. They do not account for secondary market activity. Tokens often change hands after initial issuance.
Compliance Timeline Alignment Sought
The association highlighted a potential conflict in implementation dates. The customer-ID rule and the anti-money-laundering rule have different timelines. The group warned that this creates compliance challenges. Issuers need a single, coherent planning horizon.
Regulators at FinCEN and four other agencies are reviewing the comments. The Treasury Department will finalize the regulations. The decision will shape the federal framework for payment stablecoins.
Regulatory Review Continues
The public comment period remains open. The Treasury Department will analyze all submissions. This process determines the final rules for the sector. Source data is provided by GN markets/crypto (en-US).
