In brief:
₿- The NCA proposes transition periods for existing stablecoin holders, advance notice of regulatory changes, and clearer procedures for recovering stolen tokens.
₿- The Blockchain Association calls for proportionate compliance requirements, official lists for verifying foreign issuers, and clearer rules for DeFi platforms, token bridges, and wrapped tokens.
The National Cryptocurrency Association (NCA) and the Blockchain Association (BA) are calling on the U.S. Treasury to reconsider aspects of its proposed GENIUS Act regulations, highlighting concerns over stablecoin holders’ rights, cryptocurrency compliance costs, and restrictions on decentralized networks.
In separate submissions, the two industry organizations outlined changes they want regulators to consider as the United States develops its stablecoin regulatory framework. While the NCA prioritizes consumer protection and continued access to existing stablecoin holdings, the BA warns that overly broad requirements could place unnecessary burdens on crypto businesses and decentralized finance (DeFi) platforms.
NCA calls for stablecoin holder protections
The NCA submitted recommendations to the U.S. Treasury addressing how the GENIUS Act should affect Americans who already own stablecoins.
The association wants regulators to establish a transition period when a stablecoin becomes ineligible for issuance. Under its proposal, existing holders should retain the ability to redeem, sell, or convert their tokens even after platforms stop offering them to new buyers.
These protections should also cover situations involving expired temporary waivers, changes to state certifications, and the July 18, 2028, deadline. The NCA further recommends publicly disclosing regulatory changes and implementation deadlines, so consumers have sufficient advance notice.
Another priority is the recovery of stolen stablecoins. The association argues that issuers should have clear authority to reissue tokens when required by lawful orders, helping victims recover stolen assets without unnecessary regulatory uncertainty.
The NCA also seeks clearer rules for self-custody wallets and peer-to-peer cryptocurrency transfers. Its position emphasizes that stablecoin regulation should protect consumers without unnecessarily limiting their control over digital assets.
Blockchain Association warns against excessive crypto compliance rules
The Blockchain Association has separately submitted a comment letter concerning the U.S. Treasury’s proposed regulations implementing Section 3 of the GENIUS Act.
Although the organization supports appropriate stablecoin safeguards, regulated issuers, and adequate reserves, it warns that broad compliance obligations could impose disproportionate costs on cryptocurrency companies, exchanges, and DeFi platforms.
The BA wants regulators to distinguish between different types of service providers and tailor requirements to their actual activities. It also recommends allowing businesses to verify foreign stablecoin issuers through official government lists rather than requiring extensive independent investigations.
Additionally, the association challenges impractical obligations to identify or track anonymous users on decentralized networks. It is also seeking greater regulatory clarity for algorithmic stablecoins, token bridges, and wrapped tokens, which present distinct compliance questions.
What the GENIUS Act debate means for crypto regulation
The recommendations highlight a central challenge for U.S. stablecoin regulation: protecting consumers and financial stability without unnecessarily restricting digital asset ownership, decentralized infrastructure, or cryptocurrency innovation.
The U.S. Treasury’s eventual approach could shape compliance obligations for stablecoin issuers, exchanges, and other digital asset businesses. It will also help determine how the GENIUS Act balances regulatory oversight with consumer access, self-custody, and the technical realities of blockchain networks.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial, investment, or trading advice. Readers should conduct their own research and consult a qualified cryptocurrency advisor before making any investment decisions.
Stay informed,
Rodcas Consulting Group