A crypto trade group has warned regulators against extending know-your-customer requirements to peer-to-peer transfers between stablecoin wallets. The group said requiring issuers to verify users’ identities for these transactions would “cripple the industry,” according to Decrypt. The warning comes as regulators implement the GENIUS Act, putting attention on how stablecoin compliance rules may apply beyond direct interactions with issuers. The group’s position centers on the potential impact of applying identity checks to wallet-to-wallet activity, rather than limiting verification requirements to the points already covered by existing rules. No details were provided on any specific regulatory proposal or timeline for expanding the requirements. The debate is relevant to stablecoin markets as authorities work to establish the scope of compliance obligations under the GENIUS Act.
