The Blockchain Association has thrown its support behind new KYC (know your customer) rules proposed by US regulators for payment stablecoin issuers. These requirements, currently under discussion as part of the GENIUS Act, aim to boost transparency in digital asset transactions.

KYC Checks Only for Direct Issuer Transactions

The Association agreed with regulators that mandatory KYC checks should only apply when a user interacts directly with the stablecoin issuer. That means peer-to-peer transfers and secondary market trades between users wouldn’t trigger these new KYC obligations.

Blockchain Association's Take

The group welcomed the regulatory initiative, highlighting the need to balance transparency with user convenience. The Association also called on regulators to clarify key definitions in the rules and to streamline requirements to avoid unnecessary burdens for market participants.

What’s Next?

Discussions around these rules are still ongoing. The Blockchain Association says it plans to keep working with regulators to help shape the final legislation governing how stablecoins are issued and traded in the US.