Blockchain Association argues peer-to-peer stablecoin transfers should remain exempt from customer identification rules to avoid industry disruption.
The Blockchain Association has urged U.S. regulators to restrict stablecoin identity checks to direct issuer-customer relationships. The group warned that extending Know Your Customer requirements to downstream peer-to-peer transfers could harm the sector’s growth and innovation.
In an August 21 comment letter, the advocacy group responded to proposed rules under the GENIUS Act, which established a legal framework for stablecoins last June. The association supported regulators’ decision to exclude secondary transfers from Customer Identification Program requirements but called for clearer guidelines on digital identity tools like zero-knowledge proofs.
The letter, signed by CEO Summer K. Mersinger, emphasized the need for regulatory flexibility to maintain the competitiveness of U.S. stablecoin issuers. No immediate market reaction was reported following the submission.