Crypto Group Warns Regulators Against Expanding Stablecoin KYC
Blockchain Association is pressing U.S. regulators to keep stablecoin identity checks limited to direct issuer-customer relationships under the GENIUS Act, and not extend KYC/CIP rules to peer-to-peer transfers, wallet-to-wallet movements, one-off redemptions, or unrelated issuer businesses. It argues that applying customer verification beyond the primary market would be difficult to enforce and could cripple the industry. The group supports excluding secondary transfers from CIP requirements but wants clearer boundaries on where the rules apply. It also seeks safe harbor for issuers that reasonably rely on another regulated institution’s identity checks, plus flexibility to use digital identity tools and other modern verification methods. It further urges coordination with pending AML and sanctions rules to avoid repeated compliance overhauls.
