Crypto Groups Ask Treasury to Revise GENIUS Act Rules

The National Cryptocurrency Association and Blockchain Association have asked the U.S. Treasury to revise proposed rules implementing the GENIUS Act. The groups raised concerns about stablecoin holders’ access to funds and compliance requirements for crypto businesses.

The NCA submitted its recommendations on Oct. 19. It urged the Treasury to let people who already own a stablecoin redeem, sell or convert it after the token becomes ineligible for new issuance.

The association proposed a transition period for existing holders when a temporary waiver expires, a state certification changes or the GENIUS Act’s July 18, 2028, deadline takes effect. It also requested public disclosure of regulatory changes and deadlines so users receive advance notice before platforms stop offering affected stablecoins for new purchases.

The NCA asked the Treasury to clarify how stolen stablecoins can be recovered and returned to victims through lawful orders. It proposed allowing issuers to reissue tokens when required by law, without uncertainty over whether the action would comply with regulations.

The group also requested clear rules for self-custody wallets and peer-to-peer transfers. Its recommendations focus on regulating stablecoins without cutting off existing holders’ access to their assets.

The Blockchain Association submitted a separate comment letter on the proposed regulations. It supported stablecoins issued by regulated entities and backed by adequate reserves, while warning that the rules could impose broad compliance duties on crypto companies, exchanges and decentralized finance platforms.

The association asked regulators to apply different requirements to different types of service providers. It also recommended allowing platforms to verify foreign stablecoin issuers through official government lists instead of requiring broad independent investigations.

The group opposed requirements it considers impractical for identifying or tracking anonymous users on decentralized networks. It also requested clearer rules for algorithmic stablecoins, token bridges and wrapped tokens.

The submissions came after the Federal Reserve proposed two sets of rules under the GENIUS Act. The law establishes a federal framework for stablecoins, including requirements for permitted issuers, reserves and oversight.