Blockchain Association Pushes Treasury for Clearer GENIUS Act Rules on DeFi and Foreign Stablecoin Issuers
The Blockchain Association has filed formal comments on Treasury's proposed rulemaking under the GENIUS Act, the new federal framework governing payment stablecoin issuance. The group is urging regulators to clarify how the rules apply to decentralized finance protocols and foreign-based issuers. The outcome of this rulemaking is relevant to XRP and RLUSD given Ripple's stablecoin ambitions and the broader regulatory environment for dollar-pegged digital assets.
The Blockchain Association submitted formal comments to the U.S. Treasury Department responding to its proposed rule implementing the GENIUS Act, the legislation that establishes a federal regulatory framework for payment stablecoins. The trade group flagged two specific areas it believes require greater clarity before the rule is finalized.
First, the Association raised concerns about how the rule addresses decentralized finance. The current draft, according to the filing, does not adequately define how DeFi protocols that interact with or issue stablecoins would be treated under the new regime.
Second, the group called for clearer guidance on foreign issuers seeking to sell payment stablecoins into the U.S. market. Ambiguity on this point could affect international stablecoin operators and their ability to participate in U.S. financial markets under the new law.
For the XRP ecosystem, the GENIUS Act rulemaking is a material development. Ripple's RLUSD stablecoin is a payment stablecoin that would fall within the scope of this framework, and the final rules could shape compliance obligations, market access, and competitive dynamics for RLUSD relative to other dollar-pegged assets.
Key facts
- •Blockchain Association filed comments on Treasury's GENIUS Act proposed rule
- •GENIUS Act governs who may issue and sell payment stablecoins in the U.S.
- •Comments flag insufficient clarity on DeFi protocol treatment under the rule
- •Comments also flag ambiguity regarding foreign stablecoin issuers
- •Rule is directly relevant to Ripple's RLUSD stablecoin