Blockchain Association Urges Clarity in Treasury’s GENIUS Act Rules for DeFi

GENIUS Act rules — The Blockchain Association has submitted formal comments urging the U.S. Treasury Department to provide clearer definitions for decentralized finance (DeFi) protocols and foreign issuers in its proposed rule implementing the Payment Stablecoin Issuance Act of 2025, known as the GENIUS Act.

The trade group’s filing responds to Treasury’s proposed framework for determining who is qualified to issue and sell payment stablecoins. The association argues that the current proposal’s definitions are ambiguous, particularly regarding the application of rules to decentralized systems and entities operating outside the United States.

According to the comments, this lack of clarity could inadvertently stifle innovation in the DeFi sector and create compliance uncertainty for international stablecoin issuers seeking to operate in the U.S. market. The group is calling for Treasury to refine its definitions to ensure the rules are technology-neutral and account for the global nature of digital asset markets.

The GENIUS Act, passed last year, established a federal regulatory pathway for payment stablecoins, aiming to provide consumer protections while fostering responsible innovation. Treasury’s rulemaking process is a critical step in defining how the law will be implemented in practice.