The Blockchain Association filed 26 pages of comments with the US Treasury on its rule implementing the GENIUS Act on stablecoin issuance and sale. The group supports the overall approach but wants a clearer definition of digital asset service providers that excludes self-custody software and validators. It also asks that liability for knowing participation require actual knowledge rather than an open-ended duty to vet foreign issuers. The comment period closed on Monday.

What it means: The GENIUS Act is the first US federal law on stablecoins and is expected to take effect in January 2027. Industry comments show that the fight has moved from legislation to the details. The central question is who counts as a service provider. If the definition is broad, wallet developers who never hold user funds, or participants in transaction validation, could face obligations designed for intermediaries. The same applies to how much a provider must vet foreign issuers' stablecoins before offering them. Treasury's final text will decide how easily smaller players and innovative services can operate. Similar questions came up in the EU under MiCA, where fully decentralised services are exempt but the boundary is not always clear. For European firms planning to serve US clients, the final rules will shape their compliance plans. Whether the two frameworks align or diverge will also set the cost of operating across borders.

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