In brief
- The Blockchain Association urged regulators to limit stablecoin identity checks to direct relationships between issuers and customers.
- The group said identity requirements should not extend to downstream peer-to-peer stablecoin transfers.
- The association called for rules that allow issuers to use digital identity tools, including zero-knowledge proofs.
The crypto advocacy group Blockchain Association is urging federal regulators to keep identity checks limited to direct relationships between stablecoin issuers and their customers, warning that extending the requirements to peer-to-peer transfers could “cripple the industry.”
In an August 21 comment letter, addressed to the Financial Crimes Enforcement Network, the Office of…
