GENIUS Act Stablecoin Rules Draw Industry Support, With Caveats on KYC Scope
A major blockchain industry advocacy group has formally backed proposed U.S. Treasury rules tied to the GENIUS Act governing stablecoin issuers. The group is calling for client identification requirements to be limited to direct issuer-to-customer transactions in the primary market, while also pushing for clearer regulatory definitions. The development is relevant to XRP's ecosystem given Ripple's RLUSD stablecoin and its positioning within the evolving U.S. stablecoin regulatory framework.
A prominent blockchain industry advocacy organization has submitted its support for proposed Treasury Department rules associated with the GENIUS Act, which sets out a regulatory framework for stablecoin issuers in the United States. The backing comes with specific recommendations aimed at narrowing the scope of compliance obligations placed on issuers.
The group is arguing that know-your-customer and client identification requirements should apply only to direct transactions between issuers and their customers in the primary market. This position is designed to avoid placing burdensome compliance obligations on secondary market participants and intermediaries.
The advocacy group is also calling for regulators to establish clearer and more precise definitions within the rules, signaling that the current draft language leaves room for interpretive uncertainty that could complicate implementation across the industry.
For the XRP ecosystem, the GENIUS Act's trajectory carries direct relevance. Ripple's RLUSD stablecoin operates in the same regulatory environment that these rules would govern, and the final shape of stablecoin legislation in the United States will influence how RLUSD and similar products can be issued, distributed, and used across both primary and secondary markets.
Key facts
- •Blockchain Association formally backed proposed Treasury rules under the GENIUS Act
- •Group recommends limiting KYC requirements to direct issuer-customer primary market transactions
- •Clearer regulatory definitions are being requested by the advocacy group
- •The GENIUS Act governs stablecoin issuers in the United States
- •Ripple's RLUSD stablecoin operates within the regulatory scope these rules would cover