Crypto trade group opposes GENIUS Act provisions requiring stablecoin issuers to verify identities for peer-to-peer transfers, warning it would cripple the industry.
DeFi & Yields ·
The Blockchain Association urged federal financial regulators to limit stablecoin identity verification requirements to direct issuer-customer relationships, warning that extending such checks to peer-to-peer transfers would "cripple the industry" under the GENIUS Act framework. In an August 21 comment letter to five regulators, the group argued that identity requirements should not apply to wallet-to-wallet transfers, redemptions, technology providers, or unrelated business activities, and called for flexibility in verification methods including digital identity tools and zero-knowledge proofs.