A leading crypto trade group has asked the United States government for clearer rules on stablecoins. On October 20, 2026, the Blockchain Association sent a formal twenty-six-page letter to the Department of the Treasury. The letter focuses on the GENIUS Act. This is a landmark stablecoin law passed by Congress. The group wants regulators to set clear lines before the new law takes effect in January 2027.
The GENIUS Act is an important federal law. It sets national rules for companies that create and sell payment stablecoins in America. Stablecoins are digital tokens designed to stay equal to one United States dollar. The law aims to make sure stablecoins are safe. It requires coins to be fully backed by cash reserves in trusted banks. The Treasury asked the public for feedback on its proposed rulebook. The public comment period closed on Monday. In total, 123 responses were submitted through the federal portal.
The Blockchain Association stated that it supports the government’s main goal. The group agrees that stablecoins must be safe and trustworthy for everyday users. However, the group warned that some proposed rules could accidentally hurt software builders. Overly strict rules could harm open computer networks.
First, the association asked the Treasury to fix its definition of digital asset service providers. The group explained that Congress intended to regulate customer-facing businesses. These include crypto exchanges and retail brokers. Congress did not mean to target core computer tools. The group urged regulators to protect independent software developers. They also urged protection for self-custody wallet makers and network validators. People who write open-source code or run computer nodes should not be treated like money transmitters. Sweeping them into banking rules would stifle innovation.
Second, the letter raised concerns about legal liability rules. The proposed rule could punish people who take part in illegal stablecoin launches. The Blockchain Association argued that criminal penalties should only apply to people who knowingly help an illegal issuer. Everyday crypto traders who buy or sell stablecoins on open markets should never face legal threats. Ordinary market trading must remain safe from surprise criminal charges.
Third, the group asked for realistic rules on foreign stablecoins. Under the proposal, American crypto platforms would have to run deep reviews on foreign coin creators. The association noted that local platforms often have no direct link to foreign teams. Instead, the group recommended that regulators create public lists of banned tokens. Platforms could easily check these public lists.
The letter also pointed out that open blockchains use anonymous wallet addresses. It is often impossible for software tools to know a user’s exact physical location. The group asked the Treasury to use common-sense rules. Rules should fit how blockchain networks really work in practice.
In addition, the association urged officials to avoid overlapping rules with the SEC and state regulators. Clear boundaries between federal agencies will prevent confusing compliance rules for young tech startups.
Treasury officials will now spend the next several weeks reviewing all 123 public comment letters. Regulators plan to meet with industry leaders and legal scholars through November. The agency aims to publish its final rulebook in December 2026. That timeline will give companies time to prepare before the law takes full effect in January 2027.
Everyday consumers will also benefit from balanced stablecoin rules. When stablecoin issuers must keep real cash in trusted banks, users do not have to worry about sudden crashes. Clear rules make digital dollars safer for online shopping, worker pay, and foreign remittances.
The trade group emphasized that clear rules will help the United States remain a global leader in digital finance. If rules are too vague, American developers could move their projects to Europe or Asia. But with clear guidelines, stablecoins can make global payments faster, cheaper, and safer for businesses and everyday consumers. Treasury officials will review all public letters before writing the final rules.