The Blockchain Association asked the U.S. Treasury to narrow proposed GENIUS Act stablecoin rules that it says could extend customer-facing compliance obligations and criminal liability to proprietary traders, validators and self-custody software. In a 26-page comment letter, the group supported Treasury’s overall implementation approach but argued that the final framework should more closely follow Congress’s statutory language. It urged Treasury to apply liability only where a party has actual knowledge and provides meaningful assistance comparable to coordination with an issuer, rather than treating ordinary secondary-market trading or market-making as participation. The association also proposed that service providers use regulators’ prohibited lists for foreign issuers instead of conducting open-ended diligence. New reporting places the letter and close of the comment period on Oct. 20, while the existing record identified Oct. 19, 2026; 123 submissions were filed. The law is scheduled to take effect in January 2027.