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      Blockchain Association Supports U.S. Treasury's Stablecoin Proposal with Recommendations for Improvement

      The Blockchain Association has expressed support for the U.S. Department of the Treasury's proposed stablecoin rule, which aims to implement Section 3 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The advocacy group submitted a comment letter on October 19, 2026, the final day for public input, highlighting the need for regulatory clarity while also urging for more precise definitions in the proposal.

      The proposed rule, published on August 18, 2026, seeks to clarify who qualifies as an issuer and seller of payment stablecoins in the United States, as well as to outline prohibited activities. The Blockchain Association raised concerns about the broad definitions, particularly regarding the term 'digital asset service provider,' advocating for a narrower interpretation that excludes self-custody software and certain trading firms from this classification.

      In addition to the definition of platforms, the association questioned the standards for criminal liability associated with unlawful stablecoin issuance and the treatment of foreign issuers. It also addressed the challenges of applying location-based tests to decentralized systems, which do not conform to traditional national boundaries. The association made further requests to eliminate an open-ended 'functional equivalent' test and to reassess compliance cost estimates, aiming for effective dates that align with related regulations under the GENIUS Act.

      The GENIUS Act, signed into law on July 18, 2025, establishes a federal framework for payment stablecoin issuance, requiring oversight from federal or qualifying state authorities. The act is set to take effect by January 18, 2027, or 120 days after final rules are enacted. The Treasury's proposal has garnered over 100 submissions during the comment period, indicating significant interest and engagement from various stakeholders in the crypto industry.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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