Blockchain Association argues extending identity checks to peer-to-peer stablecoin transfers risks industry disruption under new U.S. rules.
The Blockchain Association urged U.S. regulators to limit stablecoin customer identification requirements to direct issuer-customer relationships, warning broader rules could harm the sector. The group submitted comments on August 21 to five federal agencies regarding proposed rules under the GENIUS Act, which governs dollar-pegged crypto tokens.
The GENIUS Act, enacted in June 2023, establishes a legal framework for stablecoin issuance but leaves customer identification details to regulators. The association supports excluding secondary transfers from requirements but seeks clearer boundaries to avoid overreach. Regulators had proposed expanding KYC rules to cover peer-to-peer transactions.
In a statement, the group praised regulators for focusing on primary markets but stressed that extending checks to downstream transfers would conflict with the act’s intent. The letter was signed by CEO Summer K. Mersinger, a former CFTC commissioner.