The Blockchain Association has called on the US Treasury to provide clearer guidelines under the GENIUS Act, particularly regarding decentralized finance (DeFi) software and foreign stablecoin issuers. The group argues that the proposed rules, designed for regulated payment issuers, could inadvertently affect unrelated market participants. This push comes as the debate over stablecoin regulation shifts from Congress to implementation details.
A key issue is the definition of a digital asset service provider. The association seeks to distinguish customer-facing financial businesses from infrastructure components like self-custody software and validators. They also challenge how the rules might interpret participation in unlawful stablecoin issuance, advocating for enforcement based on genuine knowledge and meaningful assistance rather than secondary-market activity.
The group raises concerns about foreign-issued stablecoins, suggesting compliance should rely on accessible regulatory information rather than requiring service providers to investigate unrelated issuers. While these are advocacy positions, they highlight the industry's need for workable rules. Regulators must balance these requests against their duty to prevent financial crime and ensure payment product oversight.
The final language of the rules will determine whether compliance under the GENIUS Act primarily affects stablecoin issuers or extends further into the broader DeFi ecosystem. As the Treasury finalizes its approach, the industry awaits clarity on how these regulations will shape the future of digital finance.