The Blockchain Association has submitted a letter it sent to the US Department of the Treasury regarding the regulation of stablecoins. Treasury has requested feedback on details pertaining to the issuance and management of stablecoins as defined by the GENIUS Act.
The Blockchain Association agrees with many of the Treasury’s proposed rules, but proffers several changes.
The Blockchain Association wants to classify all statutory definitions in the GENIUS Act, like “payment stablecoins, or digital asset service provider,” as uniform requirements.
The Blockchain Association prefers a stronger definition of Uniform Requirement, believing the current proposal is too vague and could allow states to comply while weakening standards.
The Association sees the use of “substantive discretion” by States as providing too much oversight and believes it should better reflect state authority as outlined in the legislation.
Additionally, the Blockchain Association advocates that states should not be allowed to use general consumer protection authority to impose additional licensing, authorization, greenlisting, token approval, or market-access barriers on federally supervised issuers.
The group also seeks a “passporting system,” so state-approved platforms can operate nationwide.
In brief, the fear of fragmentation derived from state regulatory oversight may undermine the development and usage of payment stablecoins.
